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President Donald Trump made a bold move by raising tariffs on China to 125% effective immediately. He explained this action as a response to what he sees as China’s lack of respect for global markets.
Trump took to social media to express his frustration, saying, “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.”
This tariff hike marks a significant escalation in the ongoing trade war between the U.S. and China. Trump’s message shows he believes this tough move will force China to change its approach to trade.
Temporary Tariff Pause for Other Countries
While escalating tensions with China continue, Trump decided to ease trade relations with more than 75 other countries. He announced that the U.S. would pause tariffs for these nations for 90 days. This move comes after multiple talks between the U.S. and these countries, including representatives from the Departments of Commerce, Treasury, and the U.S. Trade Representative (USTR). These countries reached out to discuss trade-related issues, such as tariffs, currency manipulation, and non-monetary trade barriers.
Trump 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%, also effective immediately.”
Global Market Reactions
The announcement of these tariff changes sent shockwaves through global markets. Investors responded positively to the temporary relief from the tariff pause, with major stock indices like the S&P 500, Nasdaq, and Dow Jones jumping significantly. However, this optimism might not last long if trade tensions with China continue to heat up.
Although the temporary pause on tariffs offers some relief to other countries, worries about long-term trade stability linger. As tensions with China remain high, the world will closely watch what happens next in this ongoing economic battle.
Also Read: Donald Trump Announced A 90-Day Pause On Additional Tariffs For 75 U.S. Trading Partners
