Trump raises tariffs on China, announces 90-day pause for other countries
US president Donald Trump is raising import tariffs on Chinese products to 125 per cent, with immediate effect. Countries that did not retaliate and want to negotiate are given a 90-day reprieve, he announced on Wednesday evening.
"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 on his social media platform Truth Social.
For countries that did not retaliate against his tariffs, Trump has "authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately."
During that 90-day period, the levies will be reduced to 10 per cent.
Bad actors
"Do not retaliate and you will be rewarded," Treasury secretary Scott Bessent told reporters outside the White House. According to Bessent, the pause is part of Trump's plan to make deals with countries while exposing China as "bad actors".
Whether that includes the EU remains to be seen. On Wednesday, the bloc announced member states had agreed on a first set of retaliatory measures. However, this package is in response to the steel and aluminium tariffs Trump announced last month, not the tariffs from last week that have now been paused.
The New York Stock Exchange jumped in response to the news. By 20.30 the Nasdaq was up 10.4 per cent and the S&P 500 was up 7.9 per cent. European markets closed with significant losses, ahead of Trump's announcement.
© PHOTO BRENDAN SMIALOWSKI / AFP
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