US President Donald Trump has pulled back his so-called “reciprocal” tariffs to 10% for most countries, whilst increasing the amount charged to China to 125%, Kallanish learns from a Trump social media post.
The latest adjustments, unveiled on Wednesday afternoon, pause higher reciprocal tariffs for 90 days on countries that have not directly retaliated against the US.
“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,” Trump announces in his message.
The tariff increase on imports from China to 125% is also effectively immediately. Earlier in the day, China had announced a boost in its tariff on US-origin imports, raising the levy to 84% from 34% (see separate story).
“China is the most imbalanced economy in the history of the modern world, and they are the biggest source of the US trade problem, and indeed, they are a problem for the rest of the world,” states US treasury secretary Scott Bessent.
Canada and Mexico are still subject to a 25% tariff on goods that do not comply with the United States-Mexico-Canada Agreement as well as the 25% tariffs on steel, aluminium and foreign autos.
“The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction,” US commerce secretary Howard Lutnick adds.
