Trump raises tariff on China to 125%, hits 90-day pause on other nations

In a dramatic development on Wednesday, U.S. President Donald Trump announced a 125% tariff on Chinese imports, escalating the already tense trade war between the world’s two largest economies. Simultaneously, Trump authorized a 90-day truce on tariffs for non-China trade partners, reducing reciprocal tariffs to 10% during this period.

In a fiery post on his platform, Truth Social, Trump said the decision was made due to China’s "lack of respect" for global markets. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A. are over,” he declared, emphasizing that the new tariffs were effective immediately.

This move follows days of financial market volatility and appears aimed at stabilizing sentiment. Global markets surged in response to the temporary easing of tariffs on other nations, though clarity on which countries would benefit remains limited.

Trump also claimed that over 75 countries had reached out to the United States to initiate or resume trade negotiations. These included discussions on trade barriers, tariffs, currency manipulation, and non-monetary trade restrictions. “These countries have not, at my strong suggestion, retaliated… I have authorized a 90-day PAUSE,” Trump noted.

However, China responded swiftly by slapping retaliatory tariffs of 84% on U.S. goods. This came just hours after Trump’s new tariff hike, further intensifying the trade battle. The tit-for-tat measures threaten to push up prices globally and disrupt already fragile supply chains.