Orangeconomy

President Donald Trump announced a 90-day pause in new tariffs yesterday while significantly increasing duties on Chinese imports, marking a strategic shift in his trade policy approach.

In a post on his Truth Social platform, Trump stated he had authorized a "90-day pause and substantially reduced reciprocal tariffs during this period, at 10 percent, also effective immediately." However, he simultaneously announced he would increase tariffs on China to 125 percent, effective immediately, citing "the lack of respect China has shown to world markets."

The move comes after prominent hedge fund manager Bill Ackman urged Trump to implement a 90-day tariff pause, arguing the president could "achieve his goals without destroying small businesses in the short term."

This strategy mirrors Trump's real estate negotiation tactics - making bold initial demands, gauging reactions, then adjusting before finalizing deals. However, analysts note reaching compromise with China may prove more difficult than with the more accommodating European Union.

As trade tensions escalate, prospects for both a US-China trade deal and high-level negotiations appear increasingly uncertain. The economic conflict shows signs of intensifying, with both nations exchanging increasingly severe tariff measures.