Trump pauses reciprocal tariffs but hikes duties on China to 125%
President Donald Trump said Wednesday that he is pausing his tariffs plan for 90 days on 75 trading partners who did not retaliate in the hours after it went into effect.
President Donald Trump said Wednesday he was pausing higher targeted tariffs for 90 days for most countries, a stunning reversal in his trade war that has sent markets reeling.
Trump wrote on social media just before 1:30 p.m. that he came to the decision because more than 75 trading partners didn’t retaliate and have reached out to the United States to “discuss” some of the issues he had raised.
The pause didn’t apply to China, which has retaliated — with 84% hikes. Trump instead raised duties for it to 125%, effective immediately.
“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,” he wrote. “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.”
But the trade war isn’t exactly over, and the pause didn’t return the world to the time before Trump touched off the global instability; a 10% across-the-board duty will remain. For Canada and Mexico, goods covered by the U.S., Canada and Mexico trade agreement will continue to have no tariffs, while products that aren't exempt under the trade deal will have a 25% tariff. Canadian energy and fertilizer products will have a 10% tariff.
Rating: 5