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This is just phase 2.

IF Trump was rattled by China's retaliation he would include them in the pause and pretend it had nothing to do with them, he'd attempt to play it off as a global thing so as to not given undue impression of power on China's part. That he hasn't tells you he doesn't care.

The point of this was never hurting say India. It was always about China, other nations were included to disguise this fact and to shake them down because why not. Also to pressure them to bring them into the fold for the next phase.

But the fact that China's tariffs were increased, not removed tells you all you need to know. Namely they are absolutely dead serious about decoupling from China.

India is not going to help China, they're a reactionary/fascist nation actively trying to stab China in the back and take their industry and courting the US for a trade deal which the US will give them in exchange for helping move important (iphone, etc) manufacturing from China to India for the US. China is courting them anyways in public but it won't work. The only real allies China has in this are likely to be Vietnam (maybe, US is trying to peel them from China and stoke division and these moves were going to badly hurt Vietnam but were pulled back), DPRK, Russia. The US likes those odds. The US feels it can deal with an isolated bloc of those countries and Trump feels he can maybe peel Russia away with time.

China made a call and Trump seized on them trying to stand fast and rally the world to them to fight the US by giving everyone else a reprieve and thus no reason to stand with China while he leaves them isolated and alone. They can't back down now so in a way I think Trump has them where he wants them. Namely standing alone, with the rest of the world negotiating with the US on terms which will doubtless include measures to pull them into the US orbit and away from China's orbit in exchange for tariff relief.

I don't disagree with China's call but they may have walked right into a trap of certain intent and design by the US. To be fair they didn't have any great choices. If they just bowed their heads and pleaded on their knees things would also be bad for them. I've heard that Trump admin has been refusing meetings with envoys and so Trump and co are lying about China not trying to negotiate, it's just a lie they're pushing while they refuse to listen or treat with China so they can justify all of this and cast China as the belligerent aggressor who doesn't want to be fair.

It's about isolating China. It's about creating economic interests and incentives that isolate China and I think its working at least at this stage. The pause will cause most countries to come and negotiate and most will be given relief for token concessions which Trump will trumpet as big deals and big wins.

The US may indeed be intent on devaluing their currency to make exports competitive but as part of this they have to isolate China, they have to smash Chinese industry and competitiveness and look what we have? China standing alone against the US, calling out to other nations who even now slink away from it leaving it alone because no one else wants this fight, they all want to take the out because the US is still too strong.

China needs to use what strength it has to really hit the US.

Though I worry it doesn't matter. I worry they've built into their plans a hope that tariffs can continue to spiral out of control, that Chinese goods become unaffordable, that the economy crashes, that supply chains are forcibly rerouted and there are years of shortages but that they achieve a quick, fast, if painful decoupling from China leaving them free to isolate, sanction, blockade, and attempt to destroy China using their navy, their control of global finances to sanction and make trade with China for third party nations impossibly expensive or painful, and so on and use this to crush Chinese industry and economy, to break up the belt and road, to re-enslave the global south that China was trying to free with better loan and development terms. If that's the case and capital doesn't revolt and I think there's a very good chance it doesn't as at least tech capital seems to be standing with Trump and can always be bought off with specific exemptions for say Apple to import x amount per year not subject to tariffs then China has a hell of a fight ahead of them.

And no rerouting goods through India for finishing for lower tariffs isn't a long-term solution as at that point the capitalists begin to ask why they're paying those higher Chinese wages and then a cut for the Indian finishers when they could just move production itself to India as Apple has been doing to a degree.

The way for China to defeat the US and specifically Trump's anti-Nixon shock was to rally other countries to it and create their own system based on common interests of resisting US tariffs and they seemed to be making moves to attempt this, but now no other major country on earth (save maybe Russia which is subject to sanctions instead of tariffs) has that common interest, the US quickly peeled them away by offering everyone else a way out but keeping China in the cross-hairs after China had already escalated leaving China alone locked in a loop of escalation with the US with other countries looking on but having no interest in challenging the US while it's still this strong.