The US president has announced a sharp escalation in the trade war with China, raising tariffs on the country to 125 percent “effective immediately.”
Simultaneously, he said a 90-day pause would be imposed on other reciprocal tariffs, citing that over 75 countries had reached out to the US for trade talks. During this pause, the reciprocal tariff rate would be reduced to 10 percent.
It remains unclear whether this new policy will apply universally to all countries except China. Trump indicated that only nations which have not “retaliated in any way, shape, or form” against the US would benefit from the reduced rate, suggesting countries with retaliatory tariffs might be excluded.
Trump’s full statement on Truth Social:
“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!”
More updates to follow.
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