U.S. Tariff Suspension#TariffPause
Was it about isolating China or calming the markets? Or both?
Whatever the case, President Donald Trump surprised the world with his sudden decision to escalate the trade war against America's biggest competitor and postpone the high tariffs imposed on his allies.
The Chinese president insisted that he would sit down at the negotiation table.
In a quick response to China's decision to match the tariffs imposed by the United States, Trump announced on April 9 that the rate of Chinese tariffs had risen to 125%.
Meanwhile, he issued a 90-day suspension on the application of reciprocal tariffs imposed on trading partners with whom the United States has a trade deficit, including important allies in Asia such as Japan and South Korea.
Trump said in a post on "Truth Social": "Due to China's disrespect for global markets, I hereby raise the tariff imposed by the United States on China to 125%, effective immediately."
Until then, a 104% tariff was imposed on China. China responded with an 84% tariff, which matches Trump's announcement of imposing "reciprocal" tariffs of 34% and an additional 50% as a retaliatory reaction.