Global Reactions to President Donald Trump’s 90-Day Tariff Pause

April 10, 2025 — President Donald Trump’s unexpected announcement of a 90-day pause on most newly imposed tariffs has sparked a global wave of reactions, ranging from cautious optimism to outright criticism. While the move has been welcomed by some international partners and industries as a strategic breather, it has also reignited tensions—particularly with China, where tariffs have instead been increased to 125%, escalating the ongoing trade war.

U.S. Domestic Reaction: Markets Cheer, Politicians Divide

On Wall Street, the response was immediate and clear: the S&P 500 surged more than 7%, reflecting investor optimism that the pause could reduce economic uncertainty and give businesses breathing room. Economists note that the temporary halt could ease supply chain pressures and improve consumer confidence—at least in the short term.

In Washington, however, political reactions have been split along party lines. Republican lawmakers largely hailed the pause as a tactical move to stabilize markets and reposition the U.S. in its global trade dealings. Democrats, on the other hand, called it “politically motivated and erratic,” pointing to Trump’s increasing unpredictability in international negotiations.

China: Escalation Instead of De-Escalation

The most notable exception to the tariff pause is China. Rather than easing pressure on the world’s second-largest economy, Trump raised tariffs on Chinese imports to 125%, fueling what many analysts are calling a full-scale trade war escalation.

In retaliation, China has imposed 84% tariffs on U.S. goods, effective immediately. This tit-for-tat response includes major sectors such as agriculture, tech, and energy—putting American exporters on high alert.

China’s Ministry of Commerce issued a statement calling the move “an act of economic aggression,” and warned that the increased tariffs could further disrupt global trade flows.

India: A Window for Diplomacy

India sees the 90-day window as a strategic opportunity. According to Indian officials, negotiations for a bilateral trade agreement with the U.S. have been expedited, with hopes of finalizing a deal before the tariff pause expires.

“India is committed to enhancing trade ties with the U.S., and this pause allows both sides to come to the table in good faith,” a senior Indian trade official told Reuters. India had previously been hit with tariffs ranging from 22% to 35% on various goods.

United Kingdom: Still Paying the Price

The UK, however, remains subject to a 10% baseline import tax on most goods entering the U.S., plus existing 25% tariffs on steel, aluminum, and vehicles. The economic impact has been swift and damaging, with the FTSE 100 falling nearly 3%, reaching its lowest level in over a year.

British trade groups are lobbying for inclusion in the tariff pause, arguing that the current duties could push the country toward a recession. A spokesperson for Prime Minister Emily Hargreaves said, “We continue to press Washington for a level playing field.”

Southeast Asia: Time to Rethink U.S. Reliance

For the ASEAN (Association of Southeast Asian Nations) bloc, the pause comes after months of punitive tariffs—49% on Cambodia, 46% on Vietnam, and steep rates on Thailand and Malaysia. While the pause doesn’t fully eliminate these tariffs, it’s being seen as a chance to re-evaluate economic dependence on the U.S..

“The region must develop stronger intra-Asian supply chains and reduce its vulnerability to U.S. policy shifts,” said an editorial in The Jakarta Post.

European Union: Cautious but Concerned

The European Union has taken a measured tone, welcoming the pause but expressing concern about its temporary nature. EU Trade Commissioner Elise Dupont called it “a short-term fix that does not address long-standing tensions.”

With existing 20% to 30% tariffs on EU luxury goods, wines, and tech products still in place, European leaders are pushing for a more permanent resolution. Germany’s Chancellor issued a direct plea for Trump to “engage in lasting, rules-based trade.”

Automotive Industry: Michigan Speaks Out

One of the sectors excluded from the tariff pause is the automotive industry, which remains under a 25% tariff on imports. Business leaders in Michigan, the heart of the U.S. car industry, were quick to criticize the decision.

“American carmakers rely on global supply chains. These tariffs hurt everyone—from factory workers to consumers,” said an executive from the Michigan Chamber of Commerce. Calls for congressional action to protect the auto sector are growing louder.

Expert Analysis: Temporary Pause or Political Ploy?

Economists are divided on whether this tariff pause represents a genuine reset or a political strategy. Some speculate it could be a maneuver to strengthen Trump’s position in upcoming global trade summits or ahead of the 2026 midterm elections.

“This pause may offer short-term relief, but unless it leads to permanent agreements, the uncertainty will return,” said Paul Brenner, Senior Fellow at the Brookings Institution.

Relief for Some, More Pain for Others

President Trump’s 90-day tariff pause has reshuffled the global economic chessboard. While countries like India and some ASEAN members see an opening, others—particularly China and the UK—are left grappling with escalating trade tensions and economic fallout.

The coming weeks will be critical as governments scramble to renegotiate terms, secure exemptions, or prepare for renewed tariff battles once the pause expires. In the meantime, the global market holds its breath.