US President Donald Trump on Wednesday announced a 90-day tariff pause for most nations after the US-imposed duties set off a massive trade war, with tensions escalating each passing day.
However, Trump said China won’t be exempted from the tariffs despite the pause. Trump raised the tariff rate for China to 125%, effective immediately, from the previously announced 104% tariff that had kicked off earlier on Wednesday. China also announced an additional import levy on US goods, imposing an 84% tariff from Thursday.
He said in a social media post that he is pausing his so-called “reciprocal tariffs” on many other trading partners because they had responded by reaching out for talks rather than retaliating and blamed China for “lack of respect”.
Meanwhile, US stocks surged to one of their biggest gains since World War II after Trump paused his tariffs against most other nations. The S&P 500 soared 9.5%, while Dow Jones Industrial Average flew nearly 3,000 points higher, and the Nasdaq composite jumped 12.2%.
“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 posted on Truth Social.
“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.
