Trump Suspends Higher Tariffs for Most Countries While Increasing China Tariffs to 125%
President Trump has temporarily suspended higher tariffs on over 75 trading partners for 90 days while raising those on China to 125%. This announcement followed significant market declines and aims to stabilize global markets. The adjusted tariffs notably affect countries differently, with specific conditions for Canada and Mexico continuing their existing tariffs. China’s recent retaliatory tariffs of 84% further complicate the trade landscape.
On April 10, 2025, President Donald Trump announced a 90-day pause on higher tariffs for over 75 of America’s trading partners, while simultaneously increasing tariffs on China to 125%. This decision came in response to the plummeting stock markets, following his earlier announcement of tariffs dubbed “Liberation Day.” After this announcement, the S&P 500 index surged by 9.5%, signaling a rebound in global markets.
In his post on Truth Social, Mr. Trump indicated that during the pause, countries which had not retaliated against tariffs would incur a “substantially lowered” 10% tariff. This rate is notably lower than the previously set tariffs of 20% for the European Union, 24% for Japan, and 25% for South Korea. It should be noted that the UK would also incur this new 10% tariff under the revised system.
Moreover, specific tariffs were outlined: Chinese goods will face a new 125% tariff effective immediately, contributing to existing levies from Mr. Trump’s initial term. In an escalation of the trade conflict, China retaliated by raising its tariffs on U.S. goods by 50%, increasing those rates to 84%.
The tariff pause does not affect the existing 25% tariffs on Canadian and Mexican imports related to fentanyl unless compliance with trade rules is achieved. Additionally, tariffs on steel, aluminium, and car parts remain unchanged, with a separate tariff status expected for several sectors, such as copper and semiconductors.
In discussing the rationale behind the tariff pause, Mr. Trump reflected on the anxious market response, stating: “They were getting yippy, you know, were getting a little bit yippy, a little bit afraid.” Statements from White House Press Secretary Karoline Leavitt indicated that the pause was part of a strategic negotiation tactic designed to optimize Trump’s leverage with foreign trade partners. Treasury Secretary Scott Bessent corroborated this viewpoint, affirming the strength Trump has gained through these tariff measures.
In light of these developments, the UK government expressed its commitment to ongoing negotiations, emphasizing the importance of avoiding tariffs to protect jobs and livelihoods.
In summary, President Trump’s recent tariff announcements reflect his ongoing strategy to manipulate trade negotiations both to stabilize markets and exert pressure on China. The temporary pause on tariffs for most nations serves as a diplomatic maneuver while the heightened tariffs on Chinese imports signify a continued commitment to pushing back against perceived economic threats. As global markets respond positively, the implications of these decisions on trade relationships remain to be seen.
Original Source: news.sky.com
