Overview

• The Trump administration has implemented a 90-day pause on most global tariffs but raised duties on Chinese imports to 145%, effectively blocking many goods.
• China escalated its response by increasing tariffs on US goods to 125%, signaling an end to further tit-for-tat tariff hikes but leaving the door open for alternative retaliatory actions.
• The European Union has paused its planned counter-tariffs and is using the 90-day window to negotiate with the US, while also seeking to diversify trade partnerships globally.
• Financial markets remain volatile, with US bond yields climbing, the dollar weakening, and fears of inflation and recession growing due to the trade war's economic impact.
• Analysts warn that the tariff conflict may redirect Chinese exports to Europe, intensifying competition in vulnerable industries like steel, aluminum, and solar panels.