US President Donald Trump has announced a 90-day pause on his “reciprocal” tariffs, reducing tariff rates for most US trade partners to 10%. However, the US President has increased tariff on China to 125%, accusing it of showing a “lack of respect to the world’s markets.” Trump’s tariff action comes a within hours of these reciprocal tariffs kicked in. It also follows China’s decision to raise its retaliatory tariff on American exports to 84%.
Trump Slams China
Announcing his decision on his social media platform 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%, 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.”
Relief For Other Countries
Announcing the tariff pause for other countries, the US President wrote, “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!”
Markets Turn Euphoric
Trump’s tariff relief propelled Wall Street to new heights in Wednesday’s session. The S&P 500 gained over 9% – its third-largest single-day surge since the Second World War. The Dow and Nasdaq also saw the highest surge in several years. Over in Asia, Japan’s Nikkei opened higher, tracking Wall Street rally.
