- Administration lowers most tariffs to 10% but imposes 145% on China
- Stock markets erase 50% of previous day’s gains amid policy whiplash
- 90-day trade negotiation window opens with Vietnam, other nations
- White House warns of reverting to higher tariffs if deals fail
President Trump doubled down on his controversial tariff strategy during Thursday’s cabinet meeting, framing recent market volatility as necessary growing pains. We're resetting the global trade table,Trump declared, acknowledging short-term disruptions while predicting long-term benefits. This stance comes as Asian markets face renewed pressure following updated White House guidance about combined tariffs exceeding 145% for Chinese imports.
The administration’s revised tariff structure reveals stark regional disparities. While 87% of trading partners now face 10% duties – down from initial proposals of 25% – Beijing confronts compounded levies from multiple policy actions. Analysts suggest these measures could increase consumer electronics prices by 18-22% during peak holiday seasons, particularly affecting smartphone and laptop manufacturers reliant on Chinese components.
Market reactions underscore deepening investor anxiety. Thursday’s 3.8% drop in the S&P 500 erased half of Wednesday’s tariff-pause rally, marking the most volatile 48-hour period since February’s banking crisis. Treasury Secretary Scott Bessent attempted to downplay concerns, citing March’s cooling inflation data, but failed to address how fresh tariffs might reverse recent progress on price stabilization.
Behind the scenes, trade teams scramble to capitalize on the 90-day negotiation window. Thursday’s breakthrough with Vietnam – a growing alternative manufacturing hub – saw both nations agree to formal talks addressing agricultural exports and rare earth minerals. Industry data shows Vietnamese tech exports to the US grew 41% year-over-year in Q1 2025, signaling potential supply chain realignments.
Geopolitical experts highlight three critical risks in the administration’s approach:
- Accelerated decoupling from China’s $18.3 trillion economy
- Inconsistent tariff enforcement across allied nations
- Lack of contingency plans for energy market disruptions
Commerce Secretary Howard Lutnick confirmed receiving 23 formal meeting requests from trade delegations this week alone, with particular interest from German automakers and South Korean semiconductor firms. This frenetic diplomacy contrasts with China’s stonewalled communications, as Beijing refuses to restart talks until existing tariffs are halved.
Agricultural sectors brace for collateral damage. USDA projections indicate retaliatory Chinese tariffs could slash Midwest soybean exports by 37% in 2025, potentially triggering $4.2 billion in farm loan defaults. Secretary of Agriculture Brooke Rollins has yet to announce relief measures, focusing instead on expanding ethanol trade with Brazil.
As the White House walks this economic tightrope, all eyes turn to June 25 – the deadline for either deal-making success or a return to maximum tariff pressure. With inflation-adjusted GDP growth slowing to 1.2% and credit markets tightening, the administration’s beautifultrade resolution faces its first major stress test.