US President Donald Trump announced that he is pausing the global tariffs announced last week for 90 days. At the same time, he announced that US tariffs on Chinese imports, which were not included in the pause, will rise to 125%.
Trump wrote 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 of America to 125%, effective immediately. 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 added, "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 authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!"
The Nasdaq rose 8% and the Dow Jones by about 2,000 points in response to Trump's announcement.
China announced earlier today (Wednesday) that it would raise tariffs on American imports by a further 50% in retaliation for the US raising its tariffs on Chinese imports by the same degree.
The move raises Chinese tariffs on American imports to 84%.
The Chinese Commerce Ministry vowed to “fight to the end” in the ongoing trade war with the US. “If the US insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end." the ministry stated.
Last week, Trump introduced new tariffs on imports, imposing a minimum 10% duty on nearly all goods entering the United States. Additionally, certain countries with significant trade deficits with the US are facing even steeper tariffs.
Under the now-paused framework, all imports—excluding those from Mexico and Canada that comply with the USMCA agreement—would be subject to the 10% baseline tariff starting this Saturday at 12:01 a.m. ET. Non-compliant goods from USMCA member nations will continue to face a 25% tariff.
Furthermore, approximately 60 nations identified by the administration as having the most disproportionate trade practices would see tariffs equal to half the rates they impose on US products. These reciprocal measures are set to take effect on April 9 at 12:01 a.m. ET.
According to last week's announcement, imports from the European Union would be hit with 20% tariffs, China - 34% initially before the current rise to 125%, India - 26%, while imports from Israel would have a 17% tariff.