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President Donald Trump increased tariffs on imported goods from China to 125 percent on Wednesday after China raised its own taxes to 84 percent against the U.S.
The new rate exceeds the 104 percent hike that Trump announced would begin on Wednesday morning.
“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,” Trump wrote on Truth Social.
The president’s statement also paused tariffs to just 10 percent for other nations willing to cooperate with the U.S. on trade, including more than 75 nations, for the next 90 days.
“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!” he added.
Both the U.S. stock market and international markets rebounded following Trump’s announcement. The S&P 500 made its biggest single-day percentage gain since 2008, while the Nasdaq posted its biggest one-day jump since 2001, according to Newsmax.
Treasury Secretary Scott Bessent said during a Wednesday appearance on Fox News’ “Mornings With Maria” that the Trump administration hopes to discuss negotiations with China soon.
“I think it’s unfortunate that the Chinese actually don’t want to come and negotiate because they are the worst offenders in the international trading system. They have the most imbalanced economy in the history of the modern world,” Bessent said.
“I can tell you that this escalation is a loser for them, that they have some very smart the economist and the academicians, technocrats within their bureaucracy, and they would be telling the leadership that we do not have the edge here. They are the surplus country that their exports to the U.S. are five times our exports to China. So they can raise their tariffs. But so what?” he continued.
“No one wins in a war. But it’s proportionality. And the proportionality for the Chinese is going to be much worse.”