Trump announces 90-day pause on tariffs, raises China tariffs to 125%
New Delhi, Apr 9, 2025
US President Donald Trump doubled down on his tough stance on Beijing by raising the tariff on Chinese goods to 125 per cent, effective immediately
Appearing to give most countries a breather, US President Donald Trump on Wednesday (April 9) announced a 90-day pause on the full effect of his new tariffs for at least some countries.
In a post on Truth Social, Trump wrote, "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 per cent, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the USA., and other Countries, is no longer sustainable or acceptable."
The US President further 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 per cent, also effective immediately. Thank you for your attention to this matter!"
Significantly, after the US raised tariffs on China to 104 per cent, Beijing retaliated, announcing that it will impose a levy of 84 per cent on US imports, up from 34 per cent, marking a significant escalation of the tariff trade war between the countries.
'Pause aimed at giving trade partners time to negotiate'
After Donald Trump's major announcement, Treasury Secretary Scott Bessent clarified that the decision to pause certain tariffs was intended to allow time for negotiations with key trading partners — not a reaction to market volatility. He also said that he would be speaking to officials from Vietnam, Japan, India and South Korea in the coming days.
Bessent told reporters that Trump would temporarily halt his so-called ‘reciprocal’ tariffs on most of the United States' main trade allies. However, a 10 per cent tariff would still apply to the majority of global imports. In contrast, duties on Chinese goods would surge to 125 per cent with immediate effect, according to Trump’s statement on social media.
The development seemed aimed at recasting what had been a broad-based trade confrontation into one that now singles out China.
Impact on global markets
US markets soared following Trump's announcement of a 90-day suspension on the tariffs that he announced the previous week. The S&P 500 rallied by nearly 7 per cent, while the Nasdaq surged by over 8 per cent.
It’s worth noting that Trump’s tariff strategy has previously shaken financial markets, heightened fears of a potential recession, and triggered retaliatory measures from both China and the European Union.
[The Business Standard]
