In a statement posted on Truth Social within the last hour, US President Donald Trump announced he is immediately raising tariffs on China to 125%, citing a “lack of respect that China has shown to the world’s markets.”
Trump described the economic relationship between China and the United States as no longer “sustainable or acceptable.”
Describing his reasons for the tariff hike, he accused China of “ripping off the USA, and other countries.”
“At some point, hopefully in the near future, China will realize that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable,” he said.
China has consistently been accused by the United States and other Western nations of unfair trade practices, including currency manipulation, intellectual property theft, and the imposition of restrictive trade barriers on foreign companies attempting to enter the Chinese market.
Trump simultaneously announced a 90-day pause and substantial reduction in tariffs for other nations, bringing the reciprocal tariff down to 10%.
Explaining this decision, Trump noted that more than 75 countries have engaged with US representatives from the Departments of Commerce, Treasury, and the U.S. Trade Representative (USTR), seeking to negotiate solutions regarding trade barriers, tariffs, currency manipulation, and non-monetary tariffs.
Trump said these countries had refrained from retaliating against the United States “at my strong suggestion.”
“Based on the fact that more than 75 countries have called representatives of the United States…to negotiate a solution…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,” he added.
The tariff changes announced by Trump come amid an ongoing trade dispute, which has resulted in tit-for-tat tariffs imposed by the USA, China, and the EU. The tensions have led to economic uncertainty globally, affecting markets and international trade negotiations.
Amid the ongoing trade dispute, China swiftly retaliated against Trump’s 125% tariff hike, imposing an 84% levy on US goods, targeting key exports like agricultural products and machinery. The Chinese Foreign Ministry condemned America’s moves as economic coercion, with Premier Li Qiang pledging to shield domestic industries while accelerating plans to shift manufacturing to Southeast Asia. State media reported a surge in nationalist sentiment, with calls for self-reliance amid fears of a prolonged trade war.
Meanwhile, as of today, the European Union has moved forward with approving its first set of retaliatory tariffs on US imports, targeting approximately €21 billion worth of American goods. The EU’s measures, which include 25% duties on US products like soybeans, motorcycles, and poultry, aim to counter the US steel, aluminum, and broader reciprocal tariffs that took effect today. The EU tariffs are staged to begin on April 15th, with additional phases in May and December, reflecting a strategic escalation while leaving room for negotiation.