Donald Trump Punishes China With 125% Tariffs Effective Immediately After Beijing 84% Retaliatory Move

Washington: US President Donald Trump on Wednesday punished China with 125% reciprocal tariffs, effective immediately, saying Beijing showed lack of respect to the world markets after it responded with retaliatory trade tax on United States. Announcing a hike in already existing tariffs, Trump added hopefully China at some point of time will realise that days of ripping off US and other countries are no longer acceptable.

However, in a big relief for the rest of the world, Donald Trump announced a 90-day pause on tariffs and lowered reciprocal duties to 10% during this period on over 75 countries who haven't retaliated back and are negotiating trade duties with his administration. The reduced trade tax is also effective immediately.

Taking to Truth Social, US President Donald Trump in a long post said, “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 USA, and other Countries, is no longer sustainable or acceptable,” Donald Trump added. 

The United States President further said, “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 authorised 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.”

Somebody had to do it, says Donald Trump 

Speaking to press after his latest move, Donald Trump, “Well, I thought that people were jumping a little bit out of line. No other president would have done what I did. Somebody had to do it...They had to stop because it was not sustainable. I'm honoured to have done it. Somebody had to do what we did. I did a 90-day pause for the people who didn't retaliate because I told them if they retaliate, we're going to double it. And that's what I did with China because they did retaliate. So we'll see how it all works out. I think it's going to work out amazing. I think that our country is going to be at the end of a year or shorter, but I think we're going to have something that nobody would have dreamt possible. I am very happy that I have done it...”

US-China enter full blown tariff war 

Donald Trump announced a hiked tariff rate for China after the latter retaliated back with 84% trade duty while responding to US' 104% trade tax, which went effective Tuesday's midnight.

The raise in tariff duty to 104% by the United States also followed up after China raised its duty on to 34% when it retaliated back to Trump's April 2 trade tax imposition. 

Donald Trump last week on April 2 had announced his much anticipated reciprocal tariffs on almost the entire world including China, India, Japan, Europe, UK, UAE, Saudi Arabia, Australia, New Zealand, Thailand, Bangladesh , Pakistan , Indonesia, Brazil, Israel among a whole list of 133 nations.

While the rest of the world took a pause and tried to assess the impact of trade tariffs on their respective nations, China was the first one to react and imposed same amount of retaliatory tariffs – 34% – back on United States, making it a triggering point of what today is being seen as a full blown trade war between the two nations.

Trump's big tariff relief to over 75 countries

After announcement of Donald Trump's reciprocal tariffs, many nations including India, have been indulging in negotiations with the Trump administration to conclude a Bilateral Trade Agreement on a mutually agreed objectives in order to avoid trade duties.

Considering a bunch of requests, Donald Trump has for now paused his reciprocal tariffs on over 75 countries who have not retaliated so far and are negotiating a trade deal with the United States.