Trump Rekindles Trade War: China Hit with 125% Tariffs, 90-Day Break for Other Countries

U.S. President Donald Trump sent shockwaves through global markets on Wednesday, April 9, by announcing a 90-day suspension of “reciprocal” tariffs for over 75 countries, while dramatically increasing duties on Chinese goods to 125%.

“Due to China’s continued disregard for global market rules (…), I am immediately raising tariffs on Chinese products to 125%,” Trump stated on his social platform, Truth Social. “At the same time, given the willingness of over 75 countries to negotiate, I have authorized a 90-day pause and substantially reduced reciprocal tariffs, down to 10%, effective immediately.”

Markets and Allies React Swiftly

The announcement triggered an immediate rally on Wall Street: the Dow Jones surged 5.61%, the Nasdaq jumped 7.44%, and the S&P 500 rose 6.22%. In Europe, however, the CAC 40 closed with heavy losses at -3.34%, reaching its lowest point in 18 months.

Oil prices, which had plunged earlier in the day, rebounded sharply after the tariff announcement. Brent crude rose 0.97% to $63.43 per barrel, while West Texas Intermediate gained 1.17% to $60.28.

China Hits Back

China, the main target of these new measures, responded swiftly by raising its retaliatory tariffs to 84%, up from an initially planned 34%. Beijing condemned what it called a “commercial provocation” and called for a coordinated response through the World Trade Organization (WTO).

Despite the escalation, U.S. Defense Secretary Pete Hegseth insisted that the United States is “not seeking war” with China, while justifying a firm stance: “We must prevent war by showing strength and resolve in the face of Chinese threats,” he said at a regional security forum in Panama. He also warned against China’s growing influence through strategic acquisitions in sectors like energy and telecommunications.

EU Responds, But Unity Is Fragile

In response to the U.S. tariffs, the European Union announced its first wave of countermeasures, effective April 15. These include levies on imports of American corn, rice, frozen vegetables, juice, and certain cosmetics, in retaliation for Washington’s 25% tariffs on European steel and aluminum introduced in mid-March.

However, European unity is showing signs of strain. French Industry Minister Marc Ferracci warned of the risk that Italy could break ranks after Prime Minister Giorgia Meloni announced she would travel to Washington on April 17 to hold bilateral talks with Trump.

“There is a risk, and it has been there from the start, because Trump’s strategy is clear: to divide the Europeans,” Ferracci stressed.
He further emphasized that, culturally, Italians are “Americanized”, which could make a unified European front more difficult to maintain.

French Economy Minister Éric Lombard sought to reassure business leaders, calling the economic impact “manageable at this stage”, even as he described the moment as “a serious point in our economic history, and perhaps in our history overall.”