US eases global tariffs but escalates trade war with China

In a dramatic turn in the ongoing global trade war, the United States has paused enforcement of additional tariffs on 60 countries for 90 days. But while the world breathes a sigh of relief, President Donald Trump has intensified his economic offensive against China.

Kamran Khan said that the White House has rolled back its tariff enforcement on most countries, maintaining only a 10 percent base tariff. That decision, Khan said, has sparked optimism in global markets.

“The pause in tariff enforcement brought immediate relief,” he noted. “The Nasdaq jumped 12 percent, the S&P 500 rose 9.5 percent, and the Dow Jones gained 8 percent.”

Still, the pause does not apply to China.

Khan said that despite the general relaxation, Trump has imposed a staggering 125 percent tariff on Chinese products, up from 84 percent. “This confirms the global trade war is really between the U.S. and China,” he said. “Washington’s only real target appears to be Beijing.”

Trump’s administration has kept 25 percent duties on key sectors like steel, aluminum and imported vehicles. While the global base tariff stands at 10 percent, Khan questioned how sustainable that would be for American consumers.

“A 10 percent tariff could still trigger a wave of inflation in the U.S.,” he said. “There’s also a risk of pushing the global economy into recession.”

One key concern is the impact of new tariffs on China's textile exports. In 2024, China exported $438 billion worth of goods to the U.S., including $51 billion in textiles.

With Chinese exports under pressure, Khan posed a vital question: Can Pakistan fill the vacuum? “Pakistan has a golden chance not just to grow exports to the U.S., but also to attract mineral investment,” he said.

Pakistan’s two-day Mines and Minerals Investment Conference just concluded in Islamabad. The event drew delegations from the U.S., China and Saudi Arabia, as well as major multinationals like Barrick Gold and Wood Mackenzie.

The conference highlighted Pakistan’s untapped $6 trillion in natural resources. Khan said the joint civil-military initiative aims to use the $60 billion Reko Diq project as a model to attract more international capital.

One major breakthrough came from National Resources Limited, a joint venture of Fatima Fertilizer, Liberty Mills and Lucky Cement. The company announced the discovery of new copper and gold reserves in Balochistan’s Chagai district. Lead and zinc deposits were also identified.

“The opportunity is real,” Kamran Khan said. “Now it’s up to Pakistan’s government and industry to act swiftly and smartly.”