Trump Grants 90-Day Tariff Relief to 75 Countries While Doubling Down on China
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In a significant shift to his recently announced tariff policy, President Donald Trump has decided to grant a 90-day reprieve to 75 countries while escalating measures against China. This strategic pivot comes just one week after his "Liberation Day" speech on April 2, 2025, where he initially announced a blanket 10% tariff on all imports and additional "reciprocal" tariffs on about 60 countries.
Key Policy Changes
President Trump's April 9 announcement includes:
- A 90-day suspension of reciprocal tariffs for 75 countries that have requested negotiations with the United States
- Reduction of base tariffs to 10% for these countries during the negotiation period
- A dramatic increase in tariffs on Chinese goods to 125%, up from the previously announced rates
The White House stated that this decision was made after these 75 nations expressed their willingness to negotiate without imposing retaliatory tariffs against American products.
Tough Stance on China
In stark contrast to the relief offered to other trading partners, Trump has significantly hardened his position toward China. The President criticized China for showing "a lack of respect for the global market" by responding with retaliatory tariffs to his initial announcement. The 125% tariff rate represents one of the most aggressive trade measures taken against China in recent history.
Market Response
Financial markets responded positively to this more nuanced approach, with the Dow Jones and Nasdaq indexes showing significant gains following the announcement. Investors appear relieved by the temporary easing of global trade tensions, even as US-China relations deteriorate further.
Strategic Implications
The Trump administration has framed this policy adjustment as a strategic move to:
- Strengthen America's negotiating position with individual countries
- Provide time to establish separate trade agreements with cooperative nations
- Isolate China in the global trading system
- Address the US trade deficit while protecting domestic industries
Looking Ahead
This policy shift marks a significant moment in international trade relations. The 90-day negotiation window will be critical in determining whether the US can secure favorable trade terms with its partners. Meanwhile, the escalation with China suggests a deepening of the economic conflict between the world's two largest economies.
Trade experts note that the outcome of these negotiations will substantially reshape the global trading landscape, with potential long-term consequences for supply chains, consumer prices, and economic growth worldwide.