The world is abuzz with speculation and analysis as US President Donald Trump announces his decision to suspend reciprocal tariffs on most nations for a period of 90 days. This sudden turn of events in the ongoing trade war has left many wondering about the motivations behind this move.
While most countries may benefit from this temporary ceasefire, China is not so lucky. In a surprising twist, tariffs on Chinese imports have been hiked even further, now standing at a staggering 125 percent. What started as a 34 percent tariff increase during what Trump dubbed “Liberation Day” has quickly escalated into a full-blown trade war between the US and China.
Experts on economics and transatlantic relations, such as Bruce Stokes from the German Marshall Fund in Washington, D.C., are weighing in on the implications of these new developments. Clifford Coonan, DW business editor and China expert, as well as Isaac Stone Fish, author and CEO of Strategy Risks, are also providing valuable insights into the situation.
With tensions between the US and China reaching unprecedented levels, the global community is left wondering about the long-term implications of this trade war. As Akin Odeleye, Deputy Editor of Business Insider, discusses the potential consequences of these tariffs, it becomes clear that the world is watching closely to see how this high-stakes game of tariff poker will play out.
As countries brace for the impact of these tariffs, only time will tell what the future holds for international trade relations. Will this temporary ceasefire lead to lasting peace or is it just the calm before the storm? The world waits with bated breath for the next move in this high-stakes economic showdown.
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Video “The world is trying to figure out what’s behind the US president’s global tariff poker | DW News” was uploaded on 04/10/2025 to Youtube Channel DW News
Market manipulation. Guy is a casino hustler.
China's decision to sell US treasury bonds means higher interest rates, making loans more expensive for US businesses. US will need to spend more money on its debt payment servicing. This may narrow trade deficits. A weaker value of US dollar means higher prices for everyday items. The final US plan is a new Plaza Accord 2 deal with China, Europe and other nations, to create better currency exchange rates, increased US exports, balanced trade, reduced US deficits and new trade agreements; however this is highly unlikely instead US could face serious recession, inflation, and job losses at the same time.
Tariff and McKinley acts introduced protectionist measures to support US industries. However, the Panic of 1893 led to widespread business failures, bankruptcies and job losses, resulting in US economic downturn. It prompted the US govt to respond with govt support (welfare) for large private companies using public money and implementing new monetary policies. Companies that adapted to the new conditions with govt's support and tax breaks (welfare for large businesses) were more likely to survive. Big US industrialists established dominant positions in their industries. US had lower quality steel as it didn't keep pace.
The Dingley tariff further protected these industries with high percentage of tariffs on imported goods, contributing to growth of monopolies in the US. Britain and Germany led the way in innovation and technological advancements in textiles, automotive, bicycles, and lamps. These innovations enhanced efficiency, performance, and design, giving European companies a competitive edge. While the brits and Germans increased mechanized production led to making clothes more affordable, the US textile industry's decline due to the US's protectionist policies. These led to increased shifting of global markets.
The 1920s and 1930s US tariff policies, aimed at protecting farmers and factory workers, led to retaliatory tariffs, financial losses, and worsened the US great depression. Germany emerged as an industrial power by making significant strides in pharmaceuticals, chemicals and electrical engineering, becoming a leader in these fields and solidifying its position as a major industrial power. Mercedes-Benz, Volkswagen, Austin and Morris gained global market share with innovative approaches to performance, design & engineering, improving engine transmission, suspension, fuel consumption and vehicles performance.
After WW2, US had a significant advantage in manufacturing due to the devastation of European and Japanese factories. Nixon shock of 1971 was to address US economic issues, however, it led US to experience a recession and high inflation and stagnant economic growth. While, Germany and Japan saw rapid growth, and gained advantage in global trade. US business wanted to regain their influence over US govt. Powell's 1971 memo proposed his strategy for businesses. To influence US govt, funding reputed people to push their agenda in media channels and creating influential think tanks.
He soon became Supreme court Justice, and his 1978 decision allowed corporate spending on elections campaigns. This was the rise of the combined influence of conservative groups and big business in politics. They shifted US to trickle-down policy under Reagan's presidency, which dramatically record-high income inequality, increasing national debt, tax cuts for wealthy, and stagnant wages for the average working citizen for the next 40 years. US response to Japan's economic rise in the 1980s through investments in r&d, tech startups, and personal computers were very significant. However, china too began developed strong manufacturing capabilities thanks to US businesses.
These events and strategies have lessons for every country. US protectionist policies may have provided temporary benefits (welfare) for selected US industries, but the limited US innovation and competition, had negative effects on US economy. Countries like Canada, Germany, and Taiwan, had navigated previous trade wars by focusing on rapid industrialization, trade agreements and export-oriented innovation. However, these US policies were framed as a way to protect the average American citizens (when in reality it harmed them).
Unfortunately, this administration is revisiting similar protectionist strategies, which will yield disappointing and unintended results. The new tariffs have dropped oil prices, which is making it challenging for US oil producers, while providing some relief to European countries. However, these tariffs will shield some US businesses from global competition by increasing prices on foreign goods. The economic shocks and uncertainty will impact the ability of US businesses to stay afloat and leading to losses and closures.
P.s Next US is considering changes to tax policy of foreign holders of US treasury bonds, which could make US competitive and reduce US trade imbalances. If borrowing costs gets lowered it could stimulate economic growth, but increase inflation. This scenario is impractical. There is wish to have very high level of automation, however this doesn't account for getting the material costs. For example, phone or medicine manufacturers will need to invest many billions to relocate their manufacturing to the US, leading to a substantially higher price point for ordinary people, reposition mobile phones and medicines to become ultra expensive products. A very small group of influential people at the top will accumulate even more wealth as this benefits them get dominant positions in their industries, rather than it supporting American families and communities.
If the bond market crashes it’s all over for America. The debt servicing cost becomes overwhelming and it’s game over.
Money grab for him and his friends.
After 90 days the tariffs will restart again,. It aint finished
Trump is preparing for war.
That's why tariffs. He doesn't want to repeat the mistake of Pootin.
man he is manipulating stock market in open sight. what happened to us?
Dude was able to recover the stock market while keeping the 10% flat tariff and isolating China in one move. That’s 4D chess folks!
Fallen in Trump's games.
Market manipulation, insider trading
Trump reacting to CCP buying off chinese stocks!!!!
What"s behind the tarrifs?!?
Well…
There's dumb.
There's EXTRA dumb.
Then there's MAGA Trump dumb…
Why DW news is anti american and anti MAGA and anti trump? meanwhile selling to usa to get rich?
In Russia when billionaires critisise Putin they are shown the exit window in a tall building. Careful people.
This shows you how weak the US economy actually is. It can’t even hold a tariff longer than a day that propagandists press secretary can spin it all she wants but a person with half a brain can see thru the BS.
"This guy is : literally playing casino with the stock market" 😂
When Trump, of all people, accuses someone of not showing enough respect, the accused must be doing something right. Just ask Volodymyr Zelenskyy.
Fleecing the public to fund the next multi-trillion-dollar tax break to billionaires + a healthy dose of insider-trading & typical, Trumpian zero-sum idiocy 🤡📉
Tillerson was right. I love the way the media is spinning this as if trump is playing 10 dimensional chess. Blackmail and extortion while enriching themselves mafia style is the simple reality. That’s just how trump thinks. ( With a healthy dose of narcissism thrown in)
Bruce is a fool…… Take your 15 minutes….. You will never be in a position to be like Trump….. The best you can be is criticizing someone in power!!!!
Art of the deal..
It‘s all about Insider Trading.
Inside trading . Corruption trump stile
And now Trump became a good guy and Xi is the last evil boss
Let's hope that an economic failure of the US economy does not affect the world military balance, Europe is ill prepared to fill the gap.
You punch me silly, I punch back. Now it's MY fault. Make that make sense…😂
Ursula almost retaliated but didnt. Everyone came to the table except China. Now they're on the menu.
Trump's explanation…. Well I and my crownies bought in low…. And China doesn't send you stuff you ordered the cheapest stuff….!
insider trading and billions in profits….is all Trump wanted.
Around the wall, under the wall, over the wall – is he taking advice from the Mexican cartel?