United States President, Donald Trump has announced a 90-day pause on new tariffs across several countries, a move aimed at easing trade tensions that have rattled the global economy.
However, in a striking contrast, Trump simultaneously escalated the economic standoff with China, raising tariffs on Chinese imports to a staggering 125%.
The United States president made the announcement in a post on Wednesday evening, stating, “I have authorised a 90-day pause, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
The specific countries to benefit from the pause were not immediately identified.
The tariff freeze came just hours after the US imposed additional duties on goods from both adversaries and allies. Notably, Chinese goods were hit with a minimum of 104% in new tariffs, prompting swift retaliation from Beijing, which imposed its own countermeasures against US exports.
In a sharp message to China, Trump defended his decision to increase tariffs, citing what he described as unfair trade practices.
“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,” he declared. “At some point, hopefully in the near future, China will realise that the days of ripping off the U.S.A., and other countries, is no longer sustainable or acceptable.”
The move sent shockwaves through the financial markets, with U.S. stocks experiencing a rollercoaster session before rebounding sharply in late trading.
Meanwhile, global reactions began to mount as the European Union announced its first set of countermeasures in response to US tariffs on steel and aluminium, signalling a broader backlash to Washington’s aggressive trade policy.
