Trump Pauses Tariffs for Most Countries While Raising China Tariffs to 125%

President Trump has announced a 90-day halt on higher tariffs for most countries, while imposing a 125% tariff on China. This decision aims to stabilize markets amid recession fears and has led to a significant market rebound. The pause applies to over 75 trading partners with existing tariffs continuing for Canada and Mexico. The strategic pause showcases Trump’s negotiation tactics with China and reflects ongoing tensions in global trade.

President Donald Trump announced a pause on his reciprocal tariffs for most trading partners, lasting 90 days, while significantly increasing tariffs on imported goods from China to 125%. This decision followed a period of market decline due to fears of a global recession, yet it led to a notable rebound in global markets, with the S&P 500 stock index rising by 9.5%.

Mr. Trump indicated that this temporary reprieve would apply to over 75 countries that had not retaliated against his tariffs, allowing them to pay a reduced 10% tariff. This rate is notably lower than the previously set tariffs of 20% on EU goods, 24% on Japanese imports, and 25% on products from South Korea. The United Kingdom, already facing a 10% tariff, is similarly not affected by this pause.

In contrast, the 125% tariff on China is effective immediately, with Mr. Trump asserting that this measure aims to alter China’s trade practices. He expressed hope that China would realize that their previous trade behaviors are unsustainable. Previously announced tariffs include a staggering increase from China, which reacted with an 84% tariff on US goods amid escalating tensions.

For Canada and Mexico, existing 25% tariffs on fentanyl-related imports remain unchanged unless they comply with trade agreement stipulations. Additionally, tariffs on steel, aluminum, and auto components will continue, with the latter taking effect by May.

White House officials stated that the administration’s strategy is designed to maximize negotiation leverage with China. Concerns arose after Beijing implemented its tariffs before Mr. Trump’s announcement, prompting the latter to take a definitive stance on Chinese imports. As negotiations persist, UK officials have confirmed their commitment to continued discussions to mitigate the adverse impact of tariffs on their economy.

In summary, President Trump’s decision to pause higher tariffs for most countries while escalating tariffs on China reflects a complex negotiating strategy within international trade. The temporary relief for trading partners aims to stabilize global markets and address recession concerns, while the significant tariffs on China signal a tough stance on trade practices. Moving forward, both the US and global economies must navigate the implications of these tariffs amid ongoing negotiations.

Original Source: news.sky.com