In a dramatic move typical of Donald Trump, the US president has announced a 90-day pause on his reciprocal tariffs imposed over 60 nations, except China. The tariff rate for China will rise from 102% to 125%, because of "the lack of respect that China has shown to the world's markets"
Here’s the full statement by Trump on his Truth Social platform: "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 to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable.
Conversely, and based on the fact that more than 75 countries have called representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to trade, trade barriers, tariffs, currency manipulation, and non-monetary tariffs, and that these countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorised a 90 day pause, and a substantially lowered reciprocal tariff during this period, of 10%, also effective immediately."
Here are the key highlights:
--Donald Trump announces a 90-day pause on higher tariffs for dozens of countries, but hikes levies on China to 125%
--Earlier this month, he announced a "baseline" tariff of 10% on all countries, with higher rates for the "worst offenders"
--He now says the higher rates will be paused for 90 days, and instead the "reciprocal tariff" will be 10%
--But he says the rate for China will rise again, to 125%, because of "the lack of respect that China has shown to the world's markets"
--Earlier on Wednesday, China announced an 84% tariff on US imports after Donald Trump imposed a 104% tariff on Chinese goods entering the US.
The White House’s press secretary, Karoline Leavitt, said Trump had raised tariffs against China because “when you punch at the United States of America, President Trump is going to punch back harder”.
She also said the US will continue with tailor-made negotiations and that tariff level will be brought down to a universal 10% during negotiations.
US to keep 10% baseline tariffs on most countries including Mexico and Canada, says treasury secretary
Bessent said countries who did not retaliate against the US tariff announcement last week will be “rewarded”.
“Do not retaliate, and you will be rewarded,” he said. He noted that the tariff rate on Chinese goods has been raised “due to their insistence on escalation”. Mexico and Canada are included in the 10% baseline tariffs, he said.
Global markets surged after Trump announced a 90-day pause on tariffs except for China. The S&P 500 is surging 5.6%, while the Nasdaq has jumped over 8%.
Trump’s Truth Social statement suggests he has backed down on tariffs on most countries for 90 days, applying instead a 10% tariff.
