Trump enacts 90‑day tariff reprieve for all but China
Donald Trump announced a halt on new tariffs for three months. During this period, tariffs will be "only" 10%. He raised the tariffs on China to 125%.
The President of the USA announced on Wednesday evening that he is raising tariffs on China to 125%, but suspends tariffs for other countries for 90 days, referring to the additional tariffs he announced last Wednesday, which were to take effect from April 9th, 2018. During these three months, countries, including EU states, will be subject to 10% tariffs. The American stock market reacted immediately. Investors received this decision with enthusiasm.
The Treasury Secretary, Scott Bessent, explained on Wednesday evening that Donald Trump's latest decision was made because over 70 countries—after the announcement of mass tariffs—contacted the American administration and were ready for talks. China did not do so, which in retaliation, raised its tariffs on American products. As Bessent noted, that’s why the 90-day break does not apply to China.
Answering journalists' questions, the Treasury Secretary denied that the President's recent moves regarding tariffs introduce uncertainty, which markets and businesses dislike. He suggested that investors should be confident that the President is pursuing the right strategy and that things are moving in the right direction.
Additional tariffs halted. "Immediate effect"
"Based on the disrespect that China has shown towards global markets, I hereby increase the tariff imposed on China by the United States of America to 125%, effective immediately," Donald Trump wrote in a post on his social media platform, Truth Social.
"Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately," he added.
Trump plays tariffs
Recall: Donald Trump announced last Wednesday "retaliatory tariffs" on the entire world: 10% on all imports and 25% on foreign cars. The general tariffs came into effect from April 5th, and the additional ones for individual countries were to begin from April 9th.
The retaliatory tariffs imposed on the EU were to reach 20%. On Wednesday, April 9th, the European Union decided to impose tariffs of up to 25% on American goods in retaliation for the tariffs imposed by the USA on steel and aluminum. Only Hungary voted against the tariffs.
