Egypt Daily News – China called on the United States on Thursday to reach a “compromise” in the escalating trade war between the world’s two largest economies, following President Donald Trump’s announcement of a temporary suspension of tariffs on about 60 other countries. The move boosted global stock markets.
Speaking at a press conference, Chinese Ministry of Commerce spokesperson He Yung Qian stated, “The door to dialogue is open, but it must be based on mutual respect and conducted on equal footing,” stressing that China would “fight to the end” if no resolution is reached. On Thursday, China implemented an 84% tariff on all American imports—valued at approximately $143.5 billion in 2024—in response to U.S. tariffs on Chinese goods reaching as high as 125%.
Despite the heightened tensions, major Asian and European stock markets rebounded, with investors betting on a potential de-escalation. On Wednesday evening, Trump announced a 90-day suspension of mutual tariffs and an immediate reduction to 10% on imports from around 60 countries and U.S. trade partners, including the European Union.
Following recent market volatility, Trump acknowledged in a White House press conference that “we have to be flexible,” admitting that his aggressive tariff campaign announcement the previous week had “spooked” investors and “made them nervous.”
“A Significant Step”
European Commission President Ursula von der Leyen welcomed Trump’s decision to pause tariff hikes, calling it “a significant step toward global economic stability.” Stock exchanges opened higher on Thursday in response to the announcement, particularly in markets not affected by the China tariffs.
Tokyo’s stock market closed with a 9% increase, Seoul rose by 6.6%, while in Europe, early trading saw Paris up 6.27%, Frankfurt 7.81%, and London 5.91%.
Markets are now hopeful that negotiations between the U.S. and its major partners will resume to avoid a cycle of retaliatory measures that could hinder growth and consumption.
The ASEAN economic ministers declared Thursday that they would not impose retaliatory tariffs on the U.S., expressing willingness to enter talks. Vietnam, a major industrial exporter hit by a 46% U.S. tariff, announced it had reached an agreement with Washington to start bilateral trade negotiations. Hanoi also stated it aims to increase its purchases of American goods, including security and defense equipment.
On Wednesday, the EU imposed its first retaliatory measures in response to Trump’s 25% tariff on European steel and aluminum exports. The EU listed over €20 billion worth of U.S. imports subject to tariffs and expressed readiness to suspend them “at any time” should a “fair and balanced” agreement be reached.
“Severe Impact”
Trump claimed that “more than 75 countries” had expressed interest in negotiating with the U.S.
However, Trump’s unpredictable moves have drawn criticism and raised concerns about potential market manipulation. Just before announcing the tariff suspension (excluding China), Trump posted on his social platform Truth Social in all caps: “TIME TO BUY,” hinting at stock market declines since the previous Friday.
Many economists are warning of rising inflation risks and a potential global recession. WTO Director-General Ngozi Okonjo-Iweala warned Wednesday that the U.S.-China trade war could reduce global trade in goods by “up to 80%” and cut “around 7%” from global GDP in the long term.
China also warned the U.S. on Thursday that its tariff actions toward international trade partners could “severely impact” global economic stability.
