Trump announces 90-day tariff pause; raises China tariffs to 125%
What's the story
In yet another flip flop of sorts, US President Donald Trump has suspended his reciprocal tariff policy for 90 days, for non-retaliating countries.
Following the announcement, financial markets experienced a significant surge, with the NASDAQ climbing 9% and the S&P 500 rising 8%.
However, Trump has announced that he would immediately increase tariffs on China to an unprecedented 125%! This comes after China announced 84% retaliatory tariffs on all US goods earlier today.
Trade strategy
Tariff suspension aimed at addressing trade imbalance
Trump asserted over 75 countries didn't retaliate against United States, and rather approached for negotiation. That is the reason for this decision.
"I have authorized a 90-day PAUSE," Trump announced on TruthSocial, emphasizing during this time a drastically reduced reciprocal tariff of just 10% would be in effect.
Trade tensions
China tariffs raised to 125% amid market concerns
However, since China disregarded global markets, Trump has increased the tariff levied on China by the US to a record 125%.
He said, "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 comes amid fears of a trade war and global recession.