Trump raises tariffs on China to 125% and declares a 90-day "pause" for some countries

The President of the United States, Donald Trump, announced on Wednesday a drastic increase in tariffs on imports from China, raising them from 104% to 125% effective immediately, while also declaring a 90-day pause for countries that have not retaliated against his global tariffs announced on April 2.

The announcement was made through his platform Truth Social, where Trump justified his decision with harsh criticism of the business practices of the Asian giant.

“Based on the disrespect that China has shown towards global markets, I hereby raise the tariff applied to China by the United States of America to 125%, effective immediately,” he wrote.

Moreover, he warned Beijing about the end of what he considers an era of trade abuses: “At some point, and we hope it will be in the near future, China will realize that the days of taking advantage of the U.S. and other countries are no longer sustainable or acceptable.”

This Wednesday, China announced an increase in tariffs to 84% in response to the 104% announced by the Trump Administration the day before.

A truce for some countries

In parallel, Trump announced a temporary 10% reduction in tariffs for more than 75 countries that, as he explained, have refrained from taking trade retaliatory measures against the United States. The European Union is not expected to be included in this group, as it announced an increase in tariffs against the U.S. earlier this Wednesday.

The president explained that the pause is due to those countries' interest in finding a negotiated solution to various trade conflicts.

“On the contrary, and given the fact that more than 75 countries have called on representatives from the United States, including the Departments of Commerce, Treasury, and the Office of the United States Trade Representative (USTR), to negotiate a solution regarding the issues discussed about trade, trade barriers, tariffs, currency manipulation, and non-tariff barriers, and that these countries have not, at my firm suggestion, taken any retaliatory actions against the United States, I have authorized a 90-day PAUSE, and a substantially reduced reciprocal tariff of 10% during this period, effective immediately,” the president detailed.

Wall Street responds with euphoria to Trump's announcement

The announcement triggered an immediate reaction in the stock markets, with a significant surge in the main indices.

The S&P 500 surged by 6.0%, closing at 5,281.44 points, thus reversing a downward trend that had been established since the implementation of the first tariff measures on the "Liberation Day" of the previous week, as referred to by the president himself.

The temporary relief for global trade has been met with enthusiasm by investors, although uncertainty remains regarding the upcoming moves of the White House on international economic policy.

China accuses the U.S. before the World Trade Organization

At the same time, China accused the United States this Wednesday, during a meeting of the World Trade Organization (WTO), of violating international trade rules and undermining the multilateral system with the imposition of its so-called reciprocal tariffs.

During the meeting, the Chinese delegation argued that the widespread increase in tariffs adopted by President Donald Trump does not respond to a principle of “reciprocity,” but rather represents a clear prioritization of U.S. interests at the expense of the legitimate rights of other nations.

They also noted that the United States has historically been one of the major beneficiaries of the multilateral trading system and criticized its assessment of advantages solely based on trade deficits or surpluses, calling this approach misleading.

Provocations and internal tensions

Previously, during a speech this Tuesday before the National Republican Congressional Committee (NRCC), the U.S. president boasted about his aggressive tariff policy, claiming that foreign leaders “kiss his ass” to secure trade deals.

“They are dying to have an agreement. ‘Please, I will do anything, sir, I will do anything,’” the president sarcastically remarked, mimicking the pleading voices of leaders who, according to him, are desperately seeking favorable conditions to trade with the United States.

In addition, he launched a direct criticism of the Republicans who question his business leadership: "And then I see some rebellious Republicans say that Congress should handle the negotiations. Look, you don’t negotiate the way I negotiate," he stated defiantly.

These statements have intensified divisions within the Republican Party, where several senators are already advocating for legislation to limit presidential authority in the unilateral imposition of tariffs, in light of what they view as an abuse of executive power.

Frequently Asked Questions about Trump's Tariff Hike on China