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US President Donald Trump on Wednesday stated that the United States would be able to re-impose broad tariffs on other countries in two to three weeks, a step that could reignite global trade tensions and disrupt current negotiations, CNN reported. Addressing the Oval Office, Trump announced that if nations do not negotiate new trade deals with the US, his government will "set the tariff," possibly up to 50%, with China potentially being hit with an extreme rate of 145%.
Paused tariffs could come back ahead of schedule
Trump had suspended his so-called "reciprocal" tariffs on April 9 for 90 days to give time for trade talks. Officials estimated about 90 to 100 nations are in negotiations, but the tight deadline has left diplomats and trade experts racing to seal deals before the clock runs out. Without deals, Trump signalled the tariffs could be reinstated even earlier than scheduled.
Although the administration keeps in place a base 10% tariff on nearly all imports, uncertainty regarding future duties has shaken global markets and kept companies on guard. Analysts caution that the ambiguity — particularly with regard to whether the new tariffs would supplant or supplement the suspended ones — is adding to investor nervousness.
Markets shaken as $7 trillion wiped from S&P since February high
Trump's erratic tariff policy has already shaken the economy. Since peaking in February, the S&P 500 has lost $7 trillion of value, despite small recoveries in recent days. Leading financial institutions have issued warnings of a potential global recession based on the ripple effects of US import tariffs and retaliatory measures by impacted nations.
Mixed signals on China trade war: détente or deep freeze?
Even as Trump signalled his "very good" friendship with Chinese President Xi Jinping, the US-China trade war is an ongoing concern. US Treasury Secretary Scott Bessent informed investors during a JP Morgan Chase conference that the existing tariffs between the two countries operate similarly to "embargoes," suppressing trade. He estimated a "rebalancing" — not a roll-back — of tariffs that could take two or three years to return to a normal state.
Trump seconded that opinion, stating that Chinese tariffs will decrease "substantially," but he won't wait forever for a deal. "If we don't have a deal… we'll set a price," he threatened.
China denounces US pressure, calls for fair negotiations
China reacted forcefully to Washington's mixed signals. "To continue to ask for a deal while applying maximum pressure is not the correct way to treat China and simply will not succeed," Foreign Ministry spokesman Guo Jiakun said. In a statement calling for mutual respect and equality, Beijing warned that further threats from the US would freeze dialogue.
Even with the bluster, however, both sides have kept the door open to talks. But the impending deadline, unstable markets, and more hardened rhetoric have rekindled fears that the global trade war will come back in full swing — with the next instalment unfolding in weeks.
