Donald Trump announces 90-day pause on ‘reciprocal’ tariffs but raises them again for China
Donald Trump has announced a 90-day pause on tariffs for most nations but has raised them yet again for China.
Taking to Truth Social, the US president said China's tariff increase would be 'effective immediately'.
This comes as a shock after Trump's previous tariff rate of 104 percent on Chinese goods came into effect on Wednesday (9 April), the same day China hit back with tariffs of 84 percent on goods coming from the US.
The Chinese commerce ministry warned that the US' 'increase in tariffs will not solve its own problems'.
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"Instead, it will trigger sharp fluctuations in financial markets, push up US inflation pressure, weaken the US industrial base and increase the risk of a US economic recession, which will ultimately only backfire on itself," it said.
Amid China's response, however, America has now increased its tariffs on Chinese imports to a whopping 125 percent.
"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 wrote on Truth Social.
"At some point, hopefully in the near future, China will realise that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable."
Trump said that because '75 Countries have negotiated 'a solution' with the US, he has given them all a 90-day pause on tariffs.
Also, the US Treasury Secretary said that Trump will keep 10 percent baseline tariffs on most countries while escalating action against China.
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 authorised 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!"
Amid the move by the US, China's ministry of commerce has previously warned against increasing tariff rates.
"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," it added.
Earlier this week, President Trump said that the raise in tariffs was benefitting the US, calling China 'the biggest abuser of them all'.
"Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place," he wrote on X on Monday (7 April).
Topics: Donald Trump, US News, Politics, China
Anish Vij