President Trump on Wednesday jacked up tariffs on China to 125 p.c and applied a 90-day pause on reciprocal tariffs in opposition to all different buying and selling companions, inflicting a serious surge within the markets.
“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. 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 mentioned on Reality Social.
Trump’s choice to pause the upper reciprocal tariffs that he introduced final week, which hit about 60 international locations on Wednesday morning, induced a direct market surge.
Moments after his social media put up, the Dow Jones Industrial Common rising by 2,000 factors after days of main losses on Wall Avenue.
Shortly after Trump’s social media put up, Treasury Secretary Scott Bessent informed reporters on the White Home that the 90-day pause is a results of the 75 international locations wanting to barter a take care of the Trump administration to drop their tariffs, as properly because of China escalating the commerce struggle.
“Because of a large number of inbound, we had more than 75 countries contact us and I imagine after today, there will be more,” Bessent informed reporters.
“China is the most unbalanced economy in the history of the modern world and they are the biggest source of the U.S. trade problems,” Bessent added, noting that he’s talking with China’s neighbors like Vietnam and India and referred to as every negotiation “bespoke.”
Each the 125 p.c tariffs on China and the 90-day pause on different buying and selling companions will likely be efficient instantly, officers confirmed.
Bessent mentioned he has a gathering with Vietnamese officers on Wednesday and that he had a “good chat” with the Japanese ambassador on Tuesday night time, calling what Trump created together with his tariff plan “negotiating leverage.”
“I’m not calling it a trade war but I’m saying that China has escalated and President Trump responded very courageously to that and we are going to work on a solution with our trading partners,” Bessent mentioned. “It’s China’s decision that we have a deficit with them. They sell us over five times what we sell them.”
Press secretary Karoline Leavitt added, “the entire world is calling the United States of America, not China.”
The president had raised tariffs on China to 104 p.c on Wednesday morning after he threatened so as to add 50 p.c to China’s present 54 p.c tariff fee. The Chinese language authorities vowed to “fight to the end” and impose extra taxes on the U.S. after it initially responded to Trump’s tariffs by saying it might hit the U.S. with an identical 34 p.c reciprocal tax on imports beginning this week.
The president, in his Reality Social put up on Wednesday, mentioned his choice to pause tariffs on international locations aside from China was a results of international leaders wanting to barter.
“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. Thank you for your attention to this matter!” Trump added.
Commerce Secretary Howard Lutnick on X praised Trump’s put up as an indication that buying and selling companions need to repair points whereas China needs to escalate the issue.
“Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency. The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction,” Lutnick mentioned.
Up to date 2:08 p.m.
