On April 10, 2025, President Trump paused higher tariffs for most countries for 90 days, while increasing tariffs on China to 125%. This followed a significant slide in global markets amid recession fears. The pause is aimed at over 75 countries, maintaining a lower 10% tariff, with implications for negotiations with China and existing tariffs on Canada and Mexico.
On April 10, 2025, President Donald Trump announced a 90-day pause on higher tariffs for most trading partners while simultaneously increasing tariffs on Chinese goods to 125%. This decision came in response to fears of a potential global recession and was followed by a notable 9.5% increase in the S&P 500 stock index, signaling a rebound in global markets.
Trump’s announcement affected over 75 countries that had not retaliated against previous U.S. tariffs, who will maintain a lower 10% tariff during the pause, distinct from the higher tariffs previously set at 20% for the European Union, 24% for Japan, and 25% for South Korea. The UK was already set for a 10% tariff.
The increased 125% tariff on China is effective immediately, which Trump stated was necessary to address longstanding trade imbalances. Additionally, he remarked that China must recognize the unsustainability of its current practices regarding U.S. trade.
The tariff pause includes a halt on higher tariffs for 57 trading partners, specifically impacting the EU, Japan, and South Korea, but maintains existing tariffs on Mexico and Canada related to the U.S.-Mexico-Canada Agreement. Tariffs on steel, aluminum, and car parts remain unchanged.
Trump’s administration noted that this strategy facilitates better negotiation dynamics with China. With the announcement of a 50% increase in Chinese tariffs on U.S. goods just prior, the situation continues to unfold amid ongoing trade tensions. White House officials expressed confidence that Trump’s actions strengthen U.S. negotiating power in trade discussions.
In summary, President Trump’s decision to pause tariffs for most countries while imposing higher tariffs on China reflects an attempt to stabilize global markets amidst trade tensions. The strategy aims to preserve negotiating leverage against China while reassuring allies. The continuation of certain tariffs indicates persistent concerns regarding trade compliance and the broader implications of tariffs on the economy and global relations.
Original Source: news.sky.com
