#TariffsPause
In a surprising move, U.S. President Donald Trump escalated the trade war with China by raising tariffs imposed on it to 125%, in response to China imposing similar tariffs. At the same time, Trump announced a temporary freeze of 90 days on retaliatory tariffs that were to be imposed on other U.S. trade allies such as Japan and South Korea.
The aim of the decision was dual:
On one hand, to isolate China and force it back to the negotiating table.
On the other hand, to calm the financial markets that were anxious due to rising trade tensions.
Trump justified his decision by saying that China had not shown "respect for the markets of the world," which necessitated this immediate escalation.
