On Wednesday, Donald Trump, once again, took to Truth Social to abruptly shift US trade policy, announcing a 90-day pause “substantially” lowering reciprocal tariffs against all countries except China to 10 percent, ArsTechnica reported.
Because China retaliated – raising tariffs on US imports to 84% on Wednesday Trump increased tariffs on China imports to 125 percent “effective immediately.” That will not be likely to be received well by China, which advised the Trump administration to cancel all China tariffs Wednesday, NPR reported.
“The US’s practice of escalating tariffs on China is a mistake on top of a mistake,” the Chinese finance ministry said, calling for Trump to “properly remove the differences with China through equal dialogue on the basis of mutual respect.”
But even though the stock market may be, for now, recovering, tech companies remain stuck swimming in uncertainty. Ed Brzytwa, vice president of international trade for the Consumer Technology Association (CTA) – which represents the $505 billion US consumer technology industry — told Ars that for many CTA members, including small businesses and startups, “the damage has been done.”
President Donald Trump announced a complete three-month pause on all the “reciprocal” tariffs that went into effect at midnight, with the exception of China, a stunning reversal from a president who has insisted historically high tariffs were here to stay, CNN reported.
But enormous tariffs will remain on China, the world’s second-largest economy. In fact, Trump said they will be increased to 125% from 104% after China announced additional retaliatory tariffs against the United States earlier Wednesday. All other countries that were subjected to reciprocal tariff rates Wednesday will see rates go back down to the universal 10% rate.
“Based on 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 said in his social media post. “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 wrote.
Mexico and Canada won’t face the 10% tariffs, a White House official told CNN. Almost every good coming from the two nations will continue to be terrified at 25%, unless they are compliant with the US-Mexico-Canada Agreement, in which case they won’t face tariffs. However, that does not apply to sector specific tariffs Trump has imposed.
President Trump on Wednesday announced a 90-day pause on most of his new tariffs, and a lowering of the “reciprocal tariff” rate to 10%, effective immediately, he said on Truth Social, CBS News reported.
The U.S. stock market exchange surged immediately after the president’s announcement. At the same time, the president said he’s increasing the tariff rate on goods imported from China to 125%, effective immediately” he wrote.
The Tariff rate of 10% includes the European Union. It’s unclear what will happen after the 90-day period concludes, while countries negotiate with the Trump administration. Previous tariff rates on steel, aluminum, and auto imports remain unchanged, a White House official said.