Trump suspends all reciprocal tariffs except those on China
President Donald Trump has declared the full suspension of all "reciprocal" tariffs that went into force at midnight, with the exception of those imposed on China.He announced that duties on Chinese goods would be increased from 104% to 125%.
In a Truth Social post on Wednesday, former President Donald Trump stated that he had "authorised a 90-day PAUSE, and a significantly reduced reciprocal tariff of 10%, also effective immediately."
"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," he wrote on social media. "At some point, hopefully in the near future, China will realise that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable," he tweeted.
The higher tariffs on China came after Beijing announced fresh retaliatory tariffs on the United States, which are slated to take effect on Thursday.
The Trump administration has persistently targeted China's trade policies as part of its overall economic policy.
"We've had to stay the course until this moment," Treasury Secretary Scott Bessent said on Wednesday.
The administration instructed countries around the world, "Do not retaliate, and you will be rewarded." So, any country in the world that wants to come and negotiate, we are happy to listen," he said.
Bessent said the move "demonstrates President Trump's commitment to trade and our willingness to engage in good-faith negotiations."
He and Commerce Secretary Howard Lutnick were present when Trump placed the remark on Truth Social, as Lutnick acknowledged in a post on X.
Stocks rose on the announcement, with the Dow up 2,200 points, or 5.9%. The S&P 500 rose 6.5%, while the Nasdaq increased by more than 8%. Markets had been under pressure in recent days due to concerns about Trump's anticipated high tariff rises last week.
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