Overview
In April 2025, former President Donald Trump announced a 90-day suspension of proposed tariff increases on goods from over 60 countries. However, China was explicitly excluded from this freeze, with tariffs on some Chinese goods set to soar to as high as 125%. While the official justification centers around protecting American industries, a deeper analysis reveals a more complex web of domestic and geopolitical pressures.
In this report, Qingdao Be-Win unpacks the five key forces that led to this selective freeze, highlighting why China remains the outlier in Trump's latest trade maneuver.
1. Internal Pressure from the Republican Party
While Trump dominates Republican primary polls, he faces increasing opposition within the party's own ranks. Notably:
· House Speaker John Boehner publicly expressed concerns that blanket tariffs would harm U.S. farmers and exporters.
· Senator Ted Cruz warned that trade restrictions on allied nations would backfire, damaging diplomatic relationships and economic growth.
These voices represent a traditionalist, pro-trade faction of the GOP, urging Trump to tone down his isolationist rhetoric. Suspending tariffs for most countries is a way to appease these party insiders without appearing weak.
2. Mounting Pressure from Wall Street
Perhaps the loudest objections came from America's financial giants. Jamie Dimon, CEO of JPMorgan Chase, publicly criticized the tariff plan, stating that it would "destabilize market confidence" and "undermine investor trust".
· The Dow Jones Industrial Average dropped sharply after the initial tariff announcement.
· Corporate leaders from Amazon, Apple, and Boeing also reportedly lobbied against broad tariff implementation.
Wall Street remains a vital barometer of public and political sentiment. Trump, who once bragged about stock market highs during his presidency, could ill afford a market meltdown.
3. U.S. Treasury Market Instability
The U.S. bond market sent its own warning signals:
· The 10-year Treasury yield spiked above 5% following the tariff news, reflecting fears over inflation and fiscal instability.
· Investors began dumping Treasuries, anticipating both lower global demand and rising government spending.
Given the U.S. government's reliance on borrowing, maintaining bond market stability is essential. The White House realized that spooking bondholders could trigger a financial spiral—and moved to limit the damage.
4. Diplomatic Pressure from Allies
Global partners, especially in Europe, reacted sharply to the blanket tariff threat:
· Countries like Switzerland, Germany, and France reportedly issued private diplomatic protests.
· The EU Commission was preparing a retaliatory framework in the event of full-scale tariff enforcement.
Trump's team saw that straining alliances right before the 2025 G7 Summit could backfire diplomatically. The tariff freeze served as a last-minute damage control effort.
5. China as a Strategic Scapegoat
Finally, the exclusion of China is not incidental — it’s strategic.
· The Trump camp needed to justify the tariff pullback without appearing to fold.
· Targeting China helps create the illusion that any economic retaliation is justified, because China "fired first."
This narrative aligns with past Trump rhetoric, portraying China as the main antagonist in global trade.
By isolating China, Trump seeks to reframe the tariff debate: instead of retreating, he's simply "punishing the one bad actor."
In essence, China became the perfect political scapegoat — both for international optics and domestic voter messaging.
Conclusion
Trump’s decision to exempt 60 countries from his aggressive tariff policy, while singling out China, was not based on pure economic reasoning. Instead, it was a calculated political move influenced by:
· Internal GOP dynamics
· Pressure from Wall Street and U.S. debt markets
· Diplomatic protests from key allies
· The strategic utility of maintaining China as a trade adversary
For global businesses — especially those in manufacturing, raw materials, and logistics — this development signals a continued era of volatility.
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