Trump Suspends Higher Tariffs on Most Nations While Raising China Tariffs to 125%

President Trump has paused higher tariffs for 90 days on most nations, while increasing tariffs on China to 125%. The announcement comes amidst fears of a global recession. Global markets rebounded following the news, and the pause affects tariffs for over 75 countries, imposing a 10% tariff instead of higher rates.

On April 10, 2025, President Donald Trump announced a temporary suspension of higher tariffs on most trading partners, lasting for 90 days, while simultaneously increasing tariffs on China to 125%. The announcement aimed to address escalating fears of a global recession that had negatively impacted stock markets after Trump’s initial “Liberation Day” tariffs.

Following the suspension announcement, the S&P 500 index saw a remarkable 9.5% surge, signaling renewed confidence in global markets. Trump justified the pause on tariffs for “more than 75 countries” that had not retaliated against his previous tariffs. During this interval, these countries will incur a reduced tariff of 10%, significantly less than the previously set rates.

The United Kingdom, facing a 10% tariff under the new system, is not included in the tariff pause since it already experiences this levy. Conversely, the increased 125% tariff on Chinese imports is effective immediately, amid escalating trade tensions. Trump asserted that this move aims to address trade imbalances and asserted that China’s practices would no longer be tolerated.

The outlines of the tariff pause reveal that higher tariffs on 57 trading partners—including the EU, Japan, and South Korea—are to be suspended for 90 days. However, 25% tariffs imposed on steel, aluminum, and certain auto imports remain unaffected. Tariffs on goods from Mexico and Canada also continue, pending compliance with existing trade agreements.

China had reacted to escalating tensions by raising tariffs on U.S. goods by 50%, prompting Trump to describe the situation as manageable. He expressed his belief that China desires a deal but struggles to approach negotiations effectively. According to White House Press Secretary Karoline Leavitt, this decision enhances Trump’s negotiating power as he continues to seek favorable trade terms.

President Trump’s recent tariff policy adjustments have introduced a temporary pause on higher tariffs for most nations while elevating tariffs on China significantly. This strategy aims to alleviate market concerns regarding global economic stability. Despite some tariffs being paused, significant levies remain, specifically on steel, aluminum, and auto imports. The administration portrays this maneuver as a method to strengthen negotiation positions with trading partners, primarily China, which is under pressure to reach a favorable trade agreement.

Original Source: news.sky.com