Trump signed another 90-day pause on China tariffs just hours before they would have jumped to crushing levels that could have killed trade between the world's two biggest economies. Markets celebrated immediately—Japan's Nikkei shot up 3%, Australia hit records, and Chinese bonds became hot property. But strip away the party atmosphere and nothing fundamental has changed in this trade war. China isn't backing down from Trump's pressure—it's getting smarter about fighting back. Instead of matching tariffs dollar-for-dollar, Beijing is choking off rare earth minerals that American factories desperately need for everything from iPhones to military drones. Meanwhile, American consumers are already paying the price through higher inflation and job cuts. This 90-day timeout just postpones the real showdown until November, when the same unresolved issues will force both sides back to the brink.Trump signed another 90-day pause on China tariffs just hours before they would have jumped to crushing levels that could have killed trade between the world's two biggest economies. Markets celebrated immediately—Japan's Nikkei shot up 3%, Australia hit records, and Chinese bonds became hot property. But strip away the party atmosphere and nothing fundamental has changed in this trade war. China isn't backing down from Trump's pressure—it's getting smarter about fighting back. Instead of matching tariffs dollar-for-dollar, Beijing is choking off rare earth minerals that American factories desperately need for everything from iPhones to military drones. Meanwhile, American consumers are already paying the price through higher inflation and job cuts. This 90-day timeout just postpones the real showdown until November, when the same unresolved issues will force both sides back to the brink.

Trump Delays China Tariff by 90 Days- Is Xi Jinping Disregarding American Pressure?

저자: Hackernoon

출처: Hackernoon

2025/08/20 14:19

4분 읽기

이 콘텐츠에 대한 의견이나 우려 사항이 있으시면 [email protected]으로 연락주시기 바랍니다

On August 11, 2025 — Hours before Donald Trump’s massive tariffs for China were about to be locked in place, the chief executive delayed the imposition by 90 days. The move was a sigh of relief for many businesses as it would have effectively decimated much of the trade between the world’s two largest economies.

The markets responded immediately to this positive development as Japan’s Nikkei exchange reported a 3% recovery, while Australian markets reported new highs, and the S&P 500 experienced a slight uptick. Chinese bonds also shot up in demand because of the 90-day delay.

However, amidst this positive reaction by the markets, there is a need to step back and ask the real question: has the trade dispute been resolved? The answer is a thumping NO.

China Changes the Game

While Trump’s maximum pressure campaign to choke trade with tariffs is working with a lot of the smaller countries, China is hitting back aggressively. Beijing has worked out a new formula to force the US to remain on its toes: rare Earth metals. The country is ready to choke off the supply of these elusive materials if Trump acts on his threats to impose 145% tariffs on the country.

These elements aren’t exactly luxury items, but they remain highly in demand because of their extensive use in electronics and batteries, namely smartphones, electric vehicle battery packs, and even drones. China threatened to cut off this important supply, and the US was forced to capitulate for the time being.

For some analysts, it is a much smarter strategy than tariffs, as it can hold the entire electronics world hostage, and even a reduction in supply can send prices soaring and sales dropping massively.

Americans Will Bear the Brunt of the Trade War

The American consumers are already facing the effects of the ongoing trade war as core inflation jumped to 3.1% in July, which was already on the higher side. Factories cut 11,000 jobs last month despite the White House’s promise to usher in a new era of manufacturing in the USA.

U.S. consumer price index: Source: U.S. Bureau of Labor Statistics The US Federal Reserve was therefore forced to keep the interest rate unchanged, and Chairman Jerome Powell had to withstand considerable pressure from Trump to take this sensible step.

Now, the Fed faces a difficult choice: it can either decrease the interest rate and watch inflation spiral out of control amidst a trade war, or keep rates where they are and watch the economy slow down even further.

What happened with the Chinese Tariffs?

The delay in these high tariffs wasn’t a diplomatic breakthrough, but a means to avert an imminent crisis. The US and China don’t appear ready to resolve their differences, and negotiators have returned from London and Stockholm empty-handed apart from buying more time.

Both sides are locked on their respective sides as Trump needs a win for political purposes and Xi needs low tariffs to avoid slowing China’s economy down. They have stepped back from the abyss for now, but they will be back at it soon enough.

The Real Problems Stay Put

Three important related issues have remained unresolved. They include Beijing propping up state-subsidized companies with abundantly cheap raw materials, American accusations of Chinese tech espionage, and the huge trade gap between the two countries.

Trump wants China to agree to a balanced trade situation, but Xi understands that the foreign exchange surplus is what keeps China at the top. 90 more days of this diplomatic impasse won’t change the situation drastically, that is for sure.

What November Brings

November is upon us, and with it, the stakes will be even higher. China has proved that it will be a tough nut to crack for Trump, while America is beginning to understand that it won’t be able to bully China too much because of the tight trading links between the two.

The recent celebration by top markets may be a premature one, as nothing has been resolved. November will be here in no time, and the two warring sides will be staring down at each other once again.

For now, it is a timeout, but it won’t last for long—round three beckons.

시장 기회

스레숄드 가격(T)

$0.005354

$0.005354$0.005354

-0.50%

USD

스레숄드 (T) 실시간 가격 차트

SPACEX(PRE) Launchpad Is Live

Start with $100 to share 6,000 SPACEX(PRE)

면책 조항: 본 사이트에 재게시된 글들은 공개 플랫폼에서 가져온 것으로 정보 제공 목적으로만 제공됩니다. 이는 반드시 MEXC의 견해를 반영하는 것은 아닙니다. 모든 권리는 원저자에게 있습니다. 제3자의 권리를 침해하는 콘텐츠가 있다고 판단될 경우, [email protected]으로 연락하여 삭제 요청을 해주시기 바랍니다. MEXC는 콘텐츠의 정확성, 완전성 또는 시의적절성에 대해 어떠한 보증도 하지 않으며, 제공된 정보에 기반하여 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다. 본 콘텐츠는 금융, 법률 또는 기타 전문적인 조언을 구성하지 않으며, MEXC의 추천이나 보증으로 간주되어서는 안 됩니다.