Trump Imposes 125% Tariff on Chinese Goods, announces 90-Day Pause on Reciprocal Tariffs
In a significant escalation of trade tensions, U.S. President Donald Trump on Wednesday announced two major trade policy decisions that are likely to reverberate across global markets.
Washington, D.C.: In a significant escalation of trade tensions, U.S. President Donald Trump on Wednesday announced two major trade policy decisions that are likely to reverberate across global markets.
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90-Day Pause on Reciprocal Tariffs
Trump declared a 90-day pause on the imposition of new reciprocal tariffs for countries that have not retaliated against the United States and have shown a willingness to negotiate. The pause also includes a temporary reduction in reciprocal tariffs to 10%, effective immediately.
However, Trump did not specify which countries would benefit from the pause, leading to speculation and uncertainty among U.S. trade partners.
Tariff on Chinese Goods Raised to 125%
In a parallel move, Trump announced an immediate increase in tariffs on all Chinese goods to 125%, citing what he called China’s continued “lack of respect” for global trade norms and U.S. markets.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump stated in a message posted on Truth Social.
Retaliation for China’s 84% Tariff on U.S. Goods
The decision comes shortly after China imposed 84% tariffs on all American imports earlier in the day. Trump characterized China’s move as unacceptable and emphasized that the new U.S. tariffs are a response to Beijing’s aggressive trade stance.
Hope for Future Negotiations
Despite the aggressive measures, Trump hinted at a possibility of future negotiations. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” he said.
The twin announcements mark the most dramatic escalation in U.S.-China trade tensions since the start of the trade war and are expected to significantly impact global supply chains and economic stability.
