In a dramatic shift on Wednesday, U.S. President Donald Trump announced a 90-day suspension of tariffs on most countries. This decision followed global backlash over sweeping duties imposed earlier in the week. However, China was not included in this temporary relief. Trump instead raised tariffs on Chinese imports to 125%. This was an increase from 104% and was effective immediately.
China Responds with Hefty Retaliation
In response, China announced an 84% retaliatory tariff on U.S. goods, up from its earlier 34%, further intensifying the already spiraling U.S.-China trade war. The move has prompted global concern as the two economic giants continue to exchange harsh trade penalties.
Trump Blames China, Praises Others
In a post on his social media platform Truth Social, Trump blamed China for a “lack of respect.” He defended his move by saying other nations had responded to the U.S. tariffs with diplomacy rather than retaliation. “They’re reaching out to make deals,” Trump said, while accusing China of behaving otherwise.
Markets Surge on Tariff Pause
Despite the continued standoff with China, U.S. stock markets reacted positively to the broader pause in tariffs. The S&P 500 jumped 9.5%, the Dow Jones soared by nearly 3,000 points, and the Nasdaq surged by 12.2%, marking one of the strongest single-day gains since World War II.
India, EU, and Global Trade Fallout
- India was among the nations not spared, with a 26% U.S. tariff coming into force on Wednesday. Indian authorities are currently reviewing the economic impact.
- The European Union also struck back with duties on approximately $23.2 billion worth of U.S. goods, following America’s 25% tariffs on EU steel and aluminum exports.
- Global markets have shown mixed reactions, with uncertainty looming over the trade policies of the world’s largest economy.
Trump: “World Leaders Begging for Deals”
Earlier in the day, Trump claimed world leaders were “desperate” to negotiate with the U.S., boasting that they are pleading: “Please, please, sir, make a deal. I’ll do anything, sir.” He urged Americans to remain calm. He also labeled the current situation as “a great time to buy” in the market.
[…] Trump Pauses Tariffs for Most Nations, but Escalates Trade War with China […]