US President Donald Trump surprisingly declared a 90-day break from tariffs for most nations. However, China wasn’t off the hook as he increased their tariffs “effective immediately.”
This came after China imposed retaliatory tariffs on the US to which Trump responded with exceptionally sky-high tariffs, taking the trade war up many notches. The president took to Truth Social to announce these decisions.
The tariffs are going back and forth
Trump imposed 104% tariffs on China on April 9 and China responded with a fiery 84% tariff on US imports on the same day.
Now, Trump is responding with a staggering 125% tariff on Chinese goods, even after the Chinese commerce ministry warned the US that an “increase in tariffs will not solve its own problems.”
The trade war is leading to chaos
The Chinese Commerce Ministry said in a statement that the tariffs “will trigger sharp fluctuations in financial markets, push up US inflation pressure, weaken the US industrial base and increase the risk of a US economic recession, which will ultimately only backfire on itself.”
Trump took to his platform
“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,” Trump wrote on Truth Social.
Why he raised the tariffs
“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,” he explained.
He also added that, unlike China, other countries have been open to negotiation and haven’t “retaliated in any way, shape, or form against the United States.”
In turn, he was lenient with the others
“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump announced.
The 75 countries went “to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs” without retaliating against the US.
Trump is optimistic
Trump believes that the tariffs are benefiting the US, writing on April 7 on X (formerly Twitter):
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“Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place.”