A White House official confirmed Wednesday that the U.S. will maintain a 25% tariff on non-USMCA trade with Canada and Mexico. However, energy and potash will see reduced duties of 10%.
This announcement follows escalating global trade tensions, with U.S. allies and rivals alike re-evaluating their economic ties to Washington.
President Donald Trump raised the stakes in the U.S.–China trade war on Wednesday, announcing an immediate tariff increase on Chinese imports to 125%.
The move marks the most aggressive escalation yet, and, according to Trump, comes in response to China’s “lack of respect” for global markets and a history of “unfair trade practices.”
“This is no longer sustainable or acceptable,” Trump said in a Truth Social post, declaring the era of one-sided benefits for China over.
But in contrast to the hardline stance against Beijing, the president extended an olive branch to countries that haven’t retaliated. Trump introduced a 90-day moratorium on new tariff hikes for non-aggressive trade partners and confirmed a 10% “reciprocal” tariff will go into effect immediately for those willing to negotiate.
More than 75 nations have reportedly contacted the U.S. to discuss trade issues and negotiate both tariff levels and non-monetary barriers. Trump said these conversations signal the “world is watching” and ready to reset global trade dynamics.
Domestically, the freeze gives Trump an opportunity to claim diplomatic momentum, while applying added pressure on China.
Earlier this week, China slapped an 84% tariff on U.S. goods and signaled readiness to retaliate further through additional duties or a currency devaluation. Chinese officials say they will not give in to U.S. pressure.
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