Trump Relaunches Trade Escalation with China, Suspends Tariffs with Western Partners
Donald Trump has relaunched the trade escalation by announcing, on Wednesday, April 9, a double U-turn: a drastic increase in import taxes against China and, simultaneously, a temporary suspension of reciprocal tariffs with Western partners. This two-speed strategy is disrupting the balance of global trade and undermining the stability of the US debt market.
In a statement published on his social network Truth Social, the American president justified his decision in blunt terms: "Due to China's lack of respect for global markets, I am announcing an immediate increase in US tariffs to 125%," he wrote. And added, "China will understand, hopefully soon, that the days when it could take advantage of the United States and other countries are over."
In the same message, Trump acknowledged the growing pressure from other economic powers that have preferred, according to him, to avoid direct confrontation. "Over 75 countries have contacted American representatives to negotiate [...] and have not retaliated, as I strongly suggested," he specified. It is on this basis that he claims to have "authorized a 90-day PAUSE and a substantial reduction of the reciprocal tariff to 10%, also effective immediately."
However, this apparent calm fails to reassure the markets. The taxation of Chinese products at an unprecedented level - 125% - fuels fears of a brutal economic decoupling between the world's two largest economies. In parallel, the United States maintains tariffs four times higher than pre-crisis levels on all imports.
This climate of trade tensions is fueling growing distrust of the US debt market, considered the pillar of the global financial system. Weighing $29 trillion, this market is usually a safe haven. But faced with political instability and unpredictable economic decisions, investors are starting to turn away. An ominous sign, as the US public debt reaches historic levels.
The coming weeks will be decisive. If this maximum pressure strategy does not rapidly lead to balanced negotiations, it could result in a lasting loss of financial credibility for Washington - and a domino effect on all economies dependent on the dollar.
