Trump Pauses Tariffs on Most Countries While Boosting China Tariff to 125%
President Trump has suspended increased tariffs for over 75 trading partners for three months and imposed a 125% tariff on China, aiming to alleviate global economic fears. The pause will lower tariffs to 10% for affected countries. This announcement comes amid escalating tensions with China, which retaliated with increased tariffs on U.S. goods.
President Donald Trump has announced a temporary pause on heightened tariffs for over 75 U.S. trading partners, maintaining a significantly lower tariff rate for this period. While this move aims to alleviate fears of a global recession, it includes a substantial 125% tariff increase on imports from China.
In a statement on his Truth Social platform, Mr. Trump declared that the pause on certain tariffs will last for 90 days, initially impacting 57 trading partners, including the EU, Japan, and South Korea. These nations will now face a base 10% duty instead of previously established higher tariffs.
The UK will continue to adhere to the recently announced blanket 10% tariff under the new regulations, as it had already entered this classification. Conversely, the increased tariff on Chinese goods, now set at 125%, takes immediate effect. Mr. Trump expressed hope that China will recognize its unsustainable trade practices with the U.S., signifying a desire for reconciliatory negotiations.
Further details concerning Trump’s tariff measures reveal that while the pause ventures into different sectors, it does not affect the existing 25% tariffs on steel and aluminum, nor does it alter the regulations for auto parts which will take effect in May.
The uncertainties of the tariff situation have driven concerns about economic stability; however, the S&P 500 stock index witnessed a remarkable 9.5% increase following the announcement. Trump’s approach is underpinned by strategies from key aides emphasizing the creation of negotiating leverage during discussions with China, which has recently escalated its tariffs against U.S. exports up to 84% as retaliatory measures.
In summary, President Trump’s announcement regarding a 90-day pause on higher tariffs for most countries aims to stabilize the economy amid concerns of a recession. However, the imposition of an increased 125% tariff on Chinese imports signals ongoing tensions and strategic negotiations between the two nations. This adjustment reflects a comprehensive trade policy that affects several sectors while illustrating the administration’s intent to leverage tariffs as a negotiating tool with China.
Original Source: news.sky.com
