Trump Announces 90-Day Pause on Retaliatory Tariffs, Declares 125% Tariff on China

U.S. President Donald Trump has announced a significant increase in trade tariffs on China, raising them to 125% with immediate effect. Alongside this move, Trump has also declared a 90-day pause on the retaliatory tariffs imposed last week.

In a statement, Trump said that the new measures are part of a broader economic strategy aimed at enhancing American prosperity. “We are increasing the trade tariff on China to 125%, effective immediately,” he said. “At the same time, we are placing a 90-day pause on the retaliatory tariffs announced last week, and this will also take effect immediately.”

Trump revealed that more than 75 countries have reached out to the U.S. for negotiations over tariffs, particularly those that have not taken countermeasures against American trade actions.

According to foreign media reports, U.S. Treasury Secretary Scott Bessnett and White House Press Secretary Karoline Leavitt briefed the media at the White House following Trump’s statement.

Leavitt stated that retaliatory tariffs imposed on countries like Canada and Mexico have been paused for 90 days, while the 10% baseline tariff will remain in place.

Following Trump’s announcement, U.S. stock markets surged: the Dow Jones climbed by 2,000 points, and the Nasdaq saw an 8% increase. Crude oil prices rose by 2%, and gold prices jumped by 3% in the global market.

‘Liberation Day Tariffs’: A New Economic Vision

Last week, Trump signed an executive order at the White House, imposing retaliatory tariffs on various countries. Declaring it a landmark moment, he termed the move “good for America” and labeled the day as one of the most important in American history.

He called the tariff imposition a step toward “economic freedom” and dubbed them “Liberation Day Tariffs.” Trump asserted, “Today marks our economic liberation. We will use the revenue from these tariffs to pay off our debts and reduce taxes for the American people.”

Trump also announced an additional 10% tariff on all imports and a 25% tariff on foreign-made vehicles. Several other countries were also hit with elevated tariffs as part of the same order.

Trade War Escalates as Trump’s Tariffs Take Effect

The trade tariffs imposed by former U.S. President Donald Trump came into effect just hours ago, reigniting a fierce economic conflict between the United States and China.

Trump’s latest move has officially marked a new phase in the ongoing trade war, with China being the primary target. Following the introduction of the so-called Liberation Day Tariffs, the total U.S. tariff on Chinese imports had reached 54%. In response, China announced a 34% tariff on American goods and introduced additional trade restrictions against the U.S.

After China’s retaliatory move, Trump warned that if China did not roll back the 34% tariff, the U.S. would escalate its tariffs on Chinese products to 104%. That 104% tariff was implemented just yesterday.

In response, China raised its tariffs on U.S. imports to 84% today and imposed further trade sanctions. In retaliation, the U.S. has now increased its tariff on Chinese goods to a staggering 125%, intensifying the already heated trade standoff