US President Donald Trump has announced a 90-day pause on higher tariffs for dozens of countries but hikes levies on China to 125%
Earlier this month, the US president 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 world is ready to work with Trump – Lutnick
US Commerce Secretary Howard Lutnick says in a social media post that he was in the room when US President Donald Trump wrote the Truth Social post announcing the 90-day pause on most tariffs and increase to China’s tariff rate.
“Scott Bessent (head of the US treasury) and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency,” Lutnick posted on X.
“The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction,” he says.
Mexico and Canada included in 10% tariffs
Treasury Secretary Scott Bessent says Mexico and Canada are included in the 10% baseline tariffs imposed by the US, following Donald Trump’s announcement to pause higher tariffs for 90-days.
Markets soar after Trump announces tariffs pause
Financial markets have soared after President Trump announced a 90-day “pause” on the tariffs against countries who have not retaliated against the US.
As we’ve just reported, Donald Trump has raised tariffs against China to 125%, and also issued a 90 day pause to some tariffs.
Here’s his Truth Social statement in full:
“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
“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!”
Trump raises tariff on Chinese goods to 125%
Chinese goods imported to the US will carry tariffs of 125% effective immediately, Donald Trump says.
“At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other Countries, is no longer sustainable or acceptable,” the US president writes on social media platform Truth Social.
Chinese goods imported to the US will carry tariffs of 125% effective immediately, Donald Trump says.
“At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other Countries, is no longer sustainable or acceptable,” the US president writes on social media platform Truth Social.
Wall Street opened with mixed trading this morning, with both S&P 500 and Dow Jones down, we’re now seeing some slight changes as it reaches lunchtime in the US.
The trade in goods between the two economic powers added up to around $585bn (£429bn) last year.
Though the US imported far more from China ($440bn) than China imported from America ($145bn).
That left the US running a trade deficit with China – the difference between what it imports and exports – of $295bn in 2024. That’s a considerable trade deficit, equivalent to around 1% of the US economy.
But it’s less than the $1tn figure that Trump has repeatedly claimed this week.