US President Donald Trump has announced a 90-day pause on all “reciprocal” tariffs except those imposed on China, which will see tariffs increased to at least 125%.
According to Trump, who had introduced a slew of tariffs to address the alleged trade imbalance with the US, over 75 countries had negotiated and not retaliated against him, which led to the pause.
During the 90 days, a significantly reduced reciprocal tariff of just 10 percent would be in effect, he said.
However, Trump announced an immediate increase in tariffs on China to 125 percent, up from the previously declared 104 percent.
Notably, the 10% tariff was the baseline rate for most nations that came into force last Saturday.
“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,” Trump said.
“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!” his post read.
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Following Trump’s big announcement, Treasury Secretary Scott Bessent said that the pause was aimed at giving trade partners time to negotiate, and insisted that it was not because of market reactions.
