President Donald Trump has triggered a major shift in his global tariff strategy, announcing a 90-day suspension of higher import duties on dozens of countries just as they were set to take effect. The move comes amid escalating tensions with China, which is now facing a sharply increased 125% tariff on its exports to the U.S. after retaliating with an 84% levy on American goods.
While maintaining a 10% baseline tariff on all imports, Trump had initially imposed higher duties on around 60 nations he deemed “worst offenders,” including the EU, Vietnam, and South Africa. However, those hikes are now paused unless retaliation occurs—China being the glaring exception.
The dramatic shift came just hours after turmoil in financial markets, where fears over a trade war led to a sell-off in global equities and spiked U.S. debt interest rates to 4.5%, the highest since February. Following Trump’s pause announcement, U.S. stocks rebounded sharply, with the S&P 500 closing up 9.5%.
Posting on Truth Social, Trump declared that countries refraining from retaliation would benefit from the lowered reciprocal tariff policy, while doubling down on Beijing’s penalties. “The days of ripping off the U.S.A. are no longer acceptable,” he wrote.
The ongoing standoff has already caused a tit-for-tat escalation, with China moving from 34% to 84% in retaliatory tariffs, and the U.S. ramping up from 20% to a combined 125%. The WTO warns that trade between the two economic giants could drop by as much as 80%, or $466 billion.
Trump defended his revised strategy as necessary: “People were getting yippy,” he said, suggesting his flexibility was strategic. Meanwhile, China slammed the U.S. for “bullying practices,” insisting that negotiations must be based on mutual respect.
While the UK, Canada, and Mexico are not impacted by the latest changes, the EU narrowly avoided customized tariffs after its planned retaliatory measures had not yet taken effect. Nonetheless, the broader uncertainty continues to cast a shadow over global trade and economic growth.
Source: Swifteradio.com
