In a dramatic trade policy shift, former President Donald Trump declared economic war on China while extending an olive branch to other nations.
The Guardian reported that effective immediately, Chinese imports will face a crushing 125% tariff, a fivefold increase from previous levels, while most other countries get a 90-day reprieve with reduced 10% duties.
“When China punches America, we punch back harder—125% harder,” declared White House Press Secretary Karoline Leavitt, framing the move as retaliation for Beijing’s “disrespect of global markets.”
The announcement sent stocks skyrocketing, with the S&P 500 up 5.6% and the Nasdaq leaping 8% as investors cheered the temporary tariff thaw.
Inside the Trade Blitz:
- China Crackdown: Trump’s Truth Social post accused China of “ripping off the U.S.” and vowed the exploitation “ends today.”
- Global Truce: 75+ nations negotiating in “good faith” will benefit from the 10% tariff rate during talks on trade barriers and currency manipulation.
- Navarro’s Victory Lap: “This is the art of the reciprocal trade deal!” exulted Trump trade architect Peter Navarro on Fox Business, calling it “one of America’s greatest economic days.”
The White House confirmed the 90-day window for customized trade deals, after which the 10% rate could become permanent for cooperative partners. Meanwhile, Beijing faces the highest U.S. import tax in modern history—with no expiration date.
Market euphoria suggests traders see this as a temporary de-escalation—except for China, now squarely in Trump’s crosshairs.
Trump announces he is raising tariffs for China to 125%
Here’s the full statement by Donald Trump on his Truth Social platform, in which he has announced a 90-day pause on tariffs except for China:
Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.
Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, 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.
Thank you for your attention to this matter!
