President Donald Trump has an immediate increase in tariffs on Chinese imports to 125% on Wednesday, signaling a drastic aggravation of the U.S.-China trade tensions. The move, he added, is a reaction to what he called China’s "lack of respect" for global markets and a long history of unfair trade practices.
While taking a hard line against China, Trump announced a more conciliatory approach toward allies and neutral parties.
He ordered a 90-day moratorium on increases in tariffs for countries that have refrained from retaliating against the United States, and added it the form of a 10% reciprocal tariff rate, to take effect immediately.
In a post to Truth Social, Trump said China needs to know that the days of reaping the benefits of U.S. markets with no consequence are "no longer sustainable or acceptable."
More than 75 nations, meanwhile, had reached out to the U.S. government to address trade issues, negotiate non-monetary barriers, and negotiate tariffs and currency manipulation, he added.
Domestically, it gave President Trump the ability to claim a 90-day freeze on tariff hikes not just to announce a truce with nations willing to negotiate but also to the likes of China to make the pressure bolder.
China placed an 84% tariff on U.S. goods earlier and indicated that it is prepared to take countermeasures, such as further devaluation of its currency and more tariffs. Chinese officials have clarified that they will not give in to U.S. pressure.
At the time of writing, Bitcoin is trading at $81,168.31, up by nearly 6% in the last hour.