
Trump pauses most tariffs but increases pressure on China by imposing a 125% import tax
Donald Trump declared on Wednesday that he will halt new tariffs on nations who have not responded against the US for ninety days. This action follows reports that over 75 countries contacted U.S. officials to discuss trade arrangements.
Those nations will be subject to a reduced tariff rate of 10% during this 90-day period while negotiations are ongoing. It is believed that the brief pause is an attempt to allow trading partners from other countries to participate without fear of rapid sanctions.
However, China is not a candidate for such more lenient stance.
Trump stated that tariffs on Chinese goods will increase immediately, and that the new rate of 125 percent is now in place. Citing China’s conduct in international markets, the president said the higher taxes are a direct response to what he considers to be unfair trade practices by the nation.
Trump’s overall trade strategy, which involves pressure on some and discussion with others, is highlighted by this divided stance. As trade tensions continue to rise, China now confronts even more difficult economic challenges, while nations that have not retaliated get a brief reprieve.
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