In a day marked by high-stakes economic maneuvering between the world’s two largest economies, former U.S. President Donald Trump reignited the U.S.-China trade war with a dramatic escalation in tariffs, even as he extended an olive branch to other countries caught in the crossfire.
On Wednesday, tensions between Washington and Beijing flared once again as the U.S. announced a sweeping increase in tariffs on Chinese goods, hiking rates to a staggering 104%. Beijing didn’t hold back.
In swift retaliation, China unveiled its own tariff increase—raising the rate on U.S. imports from 34% to 84%. It was a significant blow in the ongoing trade conflict that has rattled global markets and diplomatic relations.
But Trump wasn’t done. Taking to his platform, TruthSocial, the former president made a surprise follow-up announcement: tariffs on China would be raised further—to a punishing 125%, effective immediately.
READ ALSO: Trump Slaps 90% Tariff on Small Packages from China
“At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable,” Trump declared in his post.
While doubling down on China, Trump struck a more conciliatory tone toward other trading partners. In what he framed as a reward for cooperation, Trump announced a 90-day suspension on any tariffs above the U.S.’s baseline rate of 10%.
According to the former president, over 75 countries have reached out to U.S. representatives—including officials from the Departments of Commerce, Treasury, and the United States Trade Representative—to negotiate over trade-related issues.
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Trump emphasized that these countries had, on his “strong suggestion,” chosen not to retaliate against American tariffs. “Because of this cooperation,” he wrote, “I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
This unexpected move, both aggressive and diplomatic in equal measure, underscores Trump’s trademark approach to international trade: pressure with the promise of negotiation.
The markets, already jittery from earlier tariff hikes, are expected to closely watch the fallout from this announcement. While the temporary pause offers a glimmer of relief to America’s trading partners, the continued escalation with China signals that the road ahead may be anything but smooth.
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