 "Trump announces 90-day pause on new tariffs for most countries, raises China levies to 125%")
President Donald Trump on Wednesday announced a 90-day pause on new tariffs for most countries amid ongoing trade tensions even as he revealed an increase in tariffs on China to 125% effective immediately, ratcheting up his tit-for-tat with Beijing.
Taking to Truth Social, Trump wrote, “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 said that more than 75 countries had asked for negotiations over the tariffs.
“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,” he added.
Meanwhile, Wall Street stocks rocketed higher shortly after Trump announced his latest pivot on his Truth Social platform.
The S&P 500 surged 6.0 percent higher to 5,281.44, snapping a brutal run of losses since Trump’s “Liberation Day” tariff announcement a week ago.
Trump’s move came after he had hours earlier ramped up the duties on Chinese goods to a giant 104 percent.
China then retaliated by rising tariffs on US imports to 84 percent.
Beijing has consistently opposed tariff rises and said Wednesday it would take “firm and forceful” steps to protect its interests.
Impact Shorts
More ShortsChina’s finance ministry said in a statement that “additional tariff rates” on imports originating in the United States would “rise from 34 percent to 84 percent”, effective from 12:01 pm on Thursday.
“The tariff escalation against China by the United States simply piles mistakes on top of mistakes (and) severely infringes on China’s legitimate rights and interests,” the ministry said.
Washington’s moves “severely damage the multilateral rules-based trade system”, it added.
The European Union had earlier launched its own counterattack, announcing measures targeting some US products from Tuesday in retaliation for American duties on global steel and aluminum exports.
The 27-nation bloc, which Trump has accused of being created to “screw” the United States, will hit more than 20 billion euros’ worth of US products, including soybeans, motorcycles and beauty products.
But the EU notably did not retaliate against the 20 percent US tariffs that came into effect a minute after midnight on Wednesday.
With inputs from agencies
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