The United States has announced a pause on planned tariff hikes after China mounted a strong economic and diplomatic defense against recent U.S. trade restrictions. This decision comes as China threatened retaliatory measures and demonstrated its capacity to absorb trade pressures through domestic market adjustments and alternative export strategies. The temporary truce suggests both economic superpowers are seeking to avoid further escalation amid global market instability, though underlying tensions over technology transfers and market access remain unresolved. Analysts view this as a tactical pause rather than a permanent solution, with the potential for renewed trade friction if negotiations fail to produce meaningful compromises. The move has provided immediate relief to global markets, particularly in manufacturing and technology sectors most exposed to U.S.-China trade flows.