Donald Trump raises tariffs on China to 125%, announces pause on most countries for 90 days: ‘Somebody had to do it’

US President Donald Trump on Wednesday announced that he had authorised a 90-day pause, and a lowered Reciprocal Tariff of 10% during the three months of truce amid trade wars induced market meltdown. President Trump also announced that US had hiked China tariffs to a whopping 125%.

‘No other president would have done what I did. Somebody had to do it.’ Trump justified his tariff offensive to reporters on Wednesday. 

“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." Donald Trump thumped on his Truth Social post.

Global markets surged on the development. The S&P 500 stock index jumped nearly 7% after the announcement, but the precise details of Trump's plans to ease tariffs on non-China trade partners were not immediately clear.

Donald Trump also reiterated a White House claim that several countries had reached out to the US president for a seat at the negotiations tables.

"Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, 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. Thank you for your attention to this matter!”, Trump wrote on Truth Social.

The 10% tariff was the baseline rate for most nations that went into effect on Saturday. It's meaningfully lower than the 20% tariff that Donald Trump had set for goods from the European Union, 24% on imports from Japan and 25% on products from South Korea. 

Although, 10% would represent an increase in the tariffs previously charged by the US government.

China, EU Announce Retaliatory Tariffs

China unveiled retaliatory tariffs of 84% on imports of US goods on Wednesday, matching additional tariffs imposed by US President Donald Trump earlier in the day and further inflaming a trade war between the world’s two biggest economies.

Donald Trump’s sweeping “reciprocal” tariffs took effect earlier on Wednesday. China was the hardest-hit nation, with a levy now totaling at least 104% on all its goods.

Canada now has auto tariffs to match the 25% being charged by Washington. The EU approved new taxes on US goods after the 25% steel and aluminum tariffs from Trump.

The amped-up retaliation comes after China repeatedly warned that it would “fight to the end” if the US moved forward with further tariffs.

Donald Trump's tariffs kicked in shortly after midnight, including 104% on products from China, 20% on the European Union, 24% on Japan and 25% on South Korea. Administration officials have tried to reassure voters, Republican lawmakers and CEOs that the rates are negotiable, but by their own admission that process could take months.