Trump jacks China tariffs to 125%, suspends others for 90 days
Donald Trump has decided to raise tariffs on China to 125 percent. At the same time, the American president announced a 90-day suspension of tariffs for other countries.
What you need to know
- Raising tariffs on China: Donald Trump decided to immediately raise tariffs on China to 125 percent. The reason for this decision is the lack of respect China has shown to global markets.
- Suspension of tariffs for other countries: The U.S. president announced a 90-day suspension of tariffs for over 75 countries that have contacted American representatives for trade negotiations.
- Reduction of mutual tariffs: During the suspension period, mutual tariffs will be reduced to 10 percent, which also takes immediate effect.
"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," the American president announced on Truth Social.
"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 emphasized.
Trump also informed that other countries could count on the suspension of newly introduced tariffs. "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," Trump pointed out.
What does this mean for U.S.-China relations?
The decision to impose 125-percent tariffs is another step in escalating trade tensions between the U.S. and China. China previously missed the deadline set by President Trump to withdraw retaliatory tariffs, prompting the U.S. to take decisive action and introduce 104-percent tariffs on Tuesday. On Wednesday, Trump upped the ante to 125 percent Eastern Time.
China is the largest trading partner of the U.S. in terms of goods import – at its peak, Americans imported goods from China worth over 500 billion dollars (CAD 705 billion) per year. Trade relations between the United States and China have been characterized for years by a significant deficit on the U.S. side. In 2024, the value of American exports to China was about 144 billion dollars (CAD 203 billion), while imports from China reached 439 billion dollars, resulting in a trade deficit of 295 billion dollars (CAD 415,5 billion). The USA exports to China agricultural goods (soybeans, corn), machinery, electronics, and industrial products – though on a much smaller scale.
The U.S. has repeatedly accused China of, among other things, artificially devaluing the yuan, supporting domestic companies through the state, limited access to the Chinese market for American businesses, intellectual property theft, and forced technology transfer. All this eventually led to a deep crisis of trust, culminating in the trade war that began in 2018 during Donald Trump's first presidency.
The Trump administration began gradually imposing high tariffs on Chinese products – eventually covering goods worth hundreds of billions of dollars. China responded with retaliatory tariffs. Although some observers hoped for a quick agreement, tensions lasted for months and had real consequences for global trade, supply chains, and financial markets. In January 2020, the so-called "phase one" agreement was signed, in which China committed to increasing purchases of American products, especially agricultural and energy. However, the COVID-19 pandemic quickly sidelined these declarations.
During Joe Biden's presidency, the rhetoric towards China softened, but strategic mistrust remained. The United States maintained many tariffs imposed by Trump while simultaneously beginning a policy of limiting China's access to advanced technologies – particularly semiconductors and artificial intelligence. In parallel, there is ongoing competition for influence in Asia, dominance in the high-tech sector, and control over key resources.
Imposing a 125-percent tariff means that the value of the tariff exceeds the value of the goods themselves. In practice – if an importer in the U.S. wants to import a product from China valued at, for example, 100 dollars, then with the addition of the 125-percent tariff, they will pay an additional 125 dollars – which is a total of 225 dollars.
