Trump Suspends Higher Tariffs for Most Nations, Raises China Tariffs to 125%
Donald Trump has paused higher tariffs on most nations for 90 days, while increasing tariffs on China to 125%. This follows concerns over a potential global recession and prompted a significant recovery in the stock market. The move is part of a strategic approach to leverage negotiations with China.
President Trump announced a 90-day pause on higher tariffs for most countries except China, where tariffs increased to 125%. This decision aims to stabilize global markets following concerns over a potential recession. The S&P 500 index rose 9.5% after the announcement, indicating a market recovery. Trump’s tariffs, which originally prompted fear among investors, have created a significant shift in international trade relations.
During the 90-day pause, more than 75 countries will avoid retaliatory tariffs and will instead pay a reduced 10% tariff. This is less than the previously announced 20% tariff for the EU, 24% for Japan, and 25% for South Korea. The UK, already facing a 10% tariff under the new system, is unaffected by this pause.
The increased tariffs on imports from China are now set at 125%, alongside prior levies imposed during Trump’s first term. This comes after China responded with an 84% tariff on U.S. goods, escalating trade tensions. No changes were made to the 25% tariffs on fentanyl-related imports from Canada and Mexico, which remain in effect depending on compliance with the USMCA trade agreement.
Specific tariffs on products like cars and metals are also still in place, with additional tariffs anticipated on copper, lumber, semiconductors, and critical minerals. White House representatives stated that the 90-day moratorium reflects Trump’s strategic negotiating position, emphasizing that he seeks to strengthen his leverage over trade agreements with China.
In summary, Trump’s decision to pause higher tariffs for many countries while increasing those on China signals a complex adjustment in U.S. trade policy. This maneuver aims to ease market fears and reinforce trade negotiations with China, while maintaining existing tariffs on specific imports from North America. The effectiveness of these moves will largely depend on the outcome of ongoing global trade discussions.
Original Source: news.sky.com
