President Donald Trump has declared a 90-day suspension for nations affected by increased US tariffs while further intensifying the escalating trade conflict with China.
In a significant policy shift, shortly after tariffs on around 60 of America’s trading partners took effect, Trump announced he would implement a universal “reduced reciprocal tariff of 10%” as discussions continue.
Simultaneously, he raised tariffs on Chinese goods to 125%, attributing this action to Beijing’s “lack of respect” after it threatened retaliatory tariffs of 84% on US exports.
This announcement follows Trump’s recent declaration regarding import taxes on all goods entering the US, marking one of the most significant shifts in international trade in decades.
The strategic plan established a baseline tariff of 10% on all imports, which remains effective, while also imposing higher rates on allies labeled as the “worst offenders” regarding what the president views as unfair trade practices.
Countries affected include the European Union, Vietnam, South Africa, among others.
Trump’s tariff announcement resulted in major market disruptions, triggering sell-offs that led to trillions in losses globally, with many Americans anxious about potential price increases and some experts predicting a higher likelihood of recession.
On Wednesday, prior to Trump’s announcement to delay higher tariffs on most nations, the US government’s debt interest rates surged to 4.5%—the highest since February.
Shortly after the suspension was revealed, US stocks surged, with the S&P 500 jumping by 7% during afternoon trading.
In his announcement on the Truth Social platform, Trump noted that over 75 countries had reached out to US officials to negotiate trade solutions.
As a result of the latest updates, all 60 countries categorized as “worst offenders” that were set to face stricter US tariffs will now receive the reduced rate of 10%, with the exception of China.
Trump indicated that the increased tariff on China would take effect immediately, stating: “At some point, hopefully in the near future, China will understand that the days of unfairly taking advantage of the U.S.A. and other countries are over.”
US Treasury Secretary Scott Bessent emphasized that the policy shift was unconnected to global market declines, while senior Democrat Chuck Schumer described the decision as evidence that Trump was “struggling and backtracking.”
The ongoing dispute between China and the US—the world’s two largest economies—started when Trump introduced the new tariffs last week.
China faced an additional 34% tariff, building upon a 20% levy imposed by the president earlier this year. In swift response, Beijing enacted a 34% tariff on US imports to China.
In retaliation, Trump threatened to instate an extra 50%, raising the total to 104% on Tuesday if China did not relent. China, however, maintained its hardline stance, declaring it would “fight to the end” against any US attempts to provoke a tariff or trade war.
Just hours after the US’s 104% tariffs went into effect, Beijing announced that it would increase its own tariffs on American goods from 34% to 84% as of Thursday.
China’s foreign ministry spokesman Lin Jian stated on Wednesday that the US “continues to impose tariffs on China in an aggressive manner.”
He emphasized that China opposes such “bullying tactics” and asserted that the US must adopt “an attitude of equality, mutual respect, and reciprocity” to facilitate resolution through negotiation.
