Trump Pauses Tariffs for Most Nations While Escalating China Tariffs to 125%
President Trump has announced a pause on higher tariffs for most trading partners for 90 days while raising tariffs on China to 125%. This move follows concerns over a global recession and aims to stabilize markets. The tariffs for most countries will be reduced to 10%, while existing tariffs on Canada and Mexico will remain in effect. This strategy is seen as a way to enhance negotiating leverage in future discussions with trading partners.
On April 10, 2025, President Donald Trump announced a 90-day pause on higher tariffs for over 75 trading partners, while simultaneously imposing a 125% tariff on imports from China. This decision arrived following concerns over a potential global recession and significant declines in stock markets, which rebounded sharply after the announcement, notably with the S&P 500 index rising by 9.5%.
During the pause, tariffs for most countries will be set at a considerably reduced 10%, lower than the previous rates applied to the European Union, Japan, and South Korea. Notably, the UK was already scheduled for a 10% tariff under the new framework, while the increased tariff on Chinese imports is aimed at curbing unfair trade practices.
The specifics of the tariff pause include the suspension of higher tariffs affecting 57 trading partners, including major economies, which will now face a baseline 10% tariff. Conversely, the 125% tariff on Chinese goods represents an escalation amidst ongoing trade tensions, as China had recently increased tariffs on US goods to 84%.
Tariffs concerning Canada and Mexico will remain in place, particularly those related to fentanyl, unless compliance with trade agreement regulations is met. Additionally, the tariffs on steel, aluminum, and automotive imports will continue unaffected during this pause, along with potential separate tariffs on essential goods such as copper and pharmaceuticals.
In a broader context, Trump’s actions appear part of a strategic negotiation effort, with hopes that China will return to the bargaining table to resolve ongoing disputes. His administration maintains this pause is aimed at strengthening US leverage, as indicated by White House officials and the US Treasury Secretary.
Despite the recent tumult in trade policies, international reactions show a measured approach to ongoing negotiations, emphasizing that a trade war is detrimental and advocating for continued discussions in mutual interests.
In summary, President Trump’s recent tariff policy adjustments indicate a strategic pause for negotiations with various trading partners while escalating tensions with China. The 90-day halt on higher tariffs aims to stabilize markets and foster discussions, particularly as the global economy faces uncertainties. This maneuver reflects Trump’s broader strategy of maximizing negotiating power, which will be critical in approaching future trade talks with the affected nations.
Original Source: news.sky.com
