US President Donald Trump has announced a 90-day pause on new tariffs for several trade partners, while sharply increasing tariffs on Chinese goods to 125%. The surprise decision came just 13 hours after higher tariffs were enforced on 56 countries and the European Union, which had triggered market instability and fears of a possible recession.
According to Bloomberg, Trump faced intense pressure from business leaders and investors to change course.
Explaining his move, Trump said, “I thought people were overreacting. They were getting nervous. No other president would’ve done what I did. But it had to be done. The situation couldn’t continue like that. I’m proud I took action. Someone had to do it.”
Despite the pause on tariffs for some countries, Trump announced that tariffs on Chinese imports would be increased to 125%, up from the 104% that began at midnight. This move adds more tension to the ongoing trade fight between the US and China.
Trump said on social media that he was holding off on tariffs for other trade partners because they chose to negotiate instead of retaliating. However, he criticized China for showing “a lack of respect” toward global markets.
“Because of the lack of respect China has shown to the world’s markets, I’m raising US tariffs on Chinese goods to 125%, starting immediately,” Trump posted on Truth Social.
He also wrote, “I hope China soon understands that it can no longer take advantage of the US and other countries. That kind of behaviour is no longer acceptable.” Since taking office in January, Trump has raised tariffs on Chinese goods five times. The first two increases of 10% each were met with calm responses from China, which analysts saw as a sign they were open to talks.
But things changed last week when Trump added a 34% tariff on Chinese goods and included other countries in what he called “Liberation Day.” In response, China imposed the same 34% tariff on US imports. After China’s move, Trump raised the tariff again by 50%, saying talks were over. This brought the total US tariff on Chinese goods to 104%.
China hit back once more, matching with a 50% hike of its own, raising its total tariff to 84%. Trump then responded by raising the US tariff to 125%. As the trade fight grew more serious, China warned its citizens to “assess the risks” before travelling to the United States.
Due to rising tensions between China and the US, and growing safety concerns in America, China’s Ministry of Culture and Tourism issued a travel warning on Wednesday night. “Given worsening China-US trade ties and security issues in the US, we advise Chinese citizens to think carefully before travelling and take extra precautions,” the ministry said in the alert.
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