Trump pauses reciprocal tariffs for 90 days for most countries, hits China with 125 per cent levy
Washington: President Donald Trump has “paused” his so-called reciprocal tariffs for the next 90 days while increasing the levy on Chinese imports to an unprecedented 125 per cent in a stunning about-face that sent sharemarkets skyrocketing in the US.
Under the pause, which Trump announced on social media, tariffs of 10 to 50 per cent on dozens of US trading partners – which had only been in place for hours – will be reduced to the “baseline” rate of 10 per cent; the rate already given to Australia, the United Kingdom and many others.
US President Donald Trump reversed course and lowered tariffs on all countries except China to the “baseline” rate of 10 per cent.Credit: AP
Meanwhile, the tariff on Chinese goods will immediately increase to 125 per cent after Beijing retaliated to each of Trump’s previous announcements with reciprocal tariffs of its own.
“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 per cent, effective immediately,” Trump said on his TruthSocial account. “At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other Countries, is no longer sustainable or acceptable.
“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States … 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 authorised a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 per cent, also effective immediately.”
His decision to pause the tariffs and send the markets soaring came just hours after he told nearly 10 million followers on TruthSocial: “THIS IS A GREAT TIME TO BUY!!! DJT.”
Treasury Secretary Scott Bessent and White House press secretary Karoline Leavitt speaking to reporters outside the West Wing.Credit: AP
Treasury Secretary Scott Bessent confirmed that countries given a 10 per cent tariff from the outset, such as Australia, would continue to have their exports taxed at that rate. “That’s going to remain,” he said.
Countries most impacted by the backdown include Japan and South Korea, which had been given tariffs of 24 and 25 per cent respectively, India (26 per cent), Vietnam (46 per cent) and the European Union (20 per cent). Mexico and Canada would also have their tariffs reduced to 10 per cent, Bessent said.
