President of the United States Donald Trump on Wednesday, April 9, announced a 90-day pause on higher tariffs and at the same time increased levies on goods imported from China to 125%.
The mentioned decision was made by Mr. Trump about 13 hours after the duties on 56 countries and the European Union came into force. Against this background, significant downturns began in the markets, and fears of a recession intensified.
Also, according to media reports, Donald Trump faced massive pressure from business leaders and investors, who actively stated the need to make changes to Washington’s trade policy strategy.
On Wednesday at the White House, Mr. Trump, commenting on the decision on the 90-day pause, told reporters that people were jumping a little bit out of line. According to him, they were getting a little bit yippy, and a little bit afraid.
According to media reports, referring to a White House official, countries affected by Donald Trump’s high reciprocal tariffs will be taxed at the 10% baseline rate during the 90-day pause. This does not apply to China, which is facing 125% levies the current week. The official also noted that US tariffs on imports of steel, aluminum, and automobiles will remain the same. Moreover, it was underlined that the pause announced by Donald Trump does not apply to shipments of products from Canada and Mexico, with the exception of items covered by the North American trade pact.
Mr. Trump’s decision to raise tariffs on imported goods from China came when the Asian country announced countermeasures against products imported from the United States. Beijing unveiled 84% levies.
Donald Trump said in a social media post that based on the lack of respect that China has shown to the world’s markets, he is raising the tariff charged to the Asian country by the US to 125%, effectively immediately.
At the same time, the President of the United States expects the head of the People’s Republic of China, Xi Jinping, or his team will come to the negotiating table. According to him, it will be a great thing for Beijing, Washington, the world, and humanity.
As we have reported earlier, China Demonstrates Readiness for Trade War.
