On April 9, 2025, U.S. President Donald Trump announced a dramatic shift in U.S. trade policy. The new measure imposes a 90-day pause on raising tariffs for most nations, locking in a flat 10% rate until July. However, for the Chinese mainland, the stakes are exceptionally high—a steep 145% tariff on all imports now intensifies the global trade dispute.
Professor Michael Dunford of the University of Sussex provided insight into this bold move, likening it to Richard Nixon’s shockwave in 1971 that forced revaluations among key economic allies. According to Dunford, behind the policy lies an urgent attempt to address huge U.S. trade deficits, accelerated by years of offshoring and diminishing domestic investment. The United States is also grappling with about 8.66 trillion dollars of short-term debt, much of which is burdened with interest rates exceeding 4%, prompting a push to refinance into long-term debt.
The professor emphasized that these measures are more than just economic recalibrations—they could pave the way for a divided international system. As Washington leans into protectionist actions, other nations such as South Korea, Japan, and the Chinese mainland are already diversifying their trade partnerships. Initiatives within ASEAN, RCEP, and BRICS might well signal a broader trend towards regional alliances and new trade settlement mechanisms.
While the long-term impacts remain uncertain, the current policy pivot underscores a potential rebalancing of global trade relations—challenging established alliances and inspiring fresh economic collaborations worldwide.
Reference(s):
cgtn.com
