The economic war between the US and China escalates with the Donald Trump announce that it freezes duties at 10% to US trade partners for 90 days, Except for Beijing where they increase to 125%.
Specifically for China, Donald Trump decided to further escalate as tariffs rise to 125% from 104% in force.
This new US government’s announcement comes in response to the … response from Beijing which announced earlier that it imposes 84% duties on US products, and Sends Wall Street indicators to a frantic rally.
According to the US president’s announcement today (09.04.2025) there will be a reduction to 10% for 90 days for the full implementation of his new duties for some at least countries.
Donald Trump also reported in a social media post that he is increasing his duties on imports from China to 125% “with immediate power” due to ‘Lack of respect that China has shown in world markets’. Trump attributed his decision to suspend the full validity of the duties to the fact that ‘More than 75 countries’ They contacted US officials “to negotiate a solution” to the commercial concerns he himself raised by imposing new duties.
The White House is also considering creating a tax credit for exporters, who could be harshly affected by the moves of other countries to react to Trump’s contributions with their own trade barriers.
The whole post of Donald Trump states:
Based on the lack of respect that China has shown on world markets, I am currently increasing the duty imposed by the United States of America on China to 125%, with immediate effect.
At some point, I hope in the near future, China will realize that the days of US and other countries are no longer viable or acceptable.
On the contrary, and on the basis of the fact that more than 75 countries have called on representatives of the United States, including the Ministries of Commerce, Finance, and the Office of Commercial Delegations, to negotiate a solution to issues discussed on trade, commercial barriers, duties, duties, duties, non -duties, duties, non -customs duties, duties, My suggestion, in retaliation in any way, form or medium against the United States, I have approved a 90 -day pause and a significantly reduced mutual tariff during this period, also with immediate effect.
Thank you for your attention on this subject!
Finance Minister Scott Bessed said that countries that “did not retaliate” will be rewarded and other countries are expected to ask the US to negotiate “the best agreement”. He recalled that Japan is already preparing to send a delegation to Washington to discuss the matter. The suspension, he argued, gives time to negotiate and was not decided due to the reaction of the markets to the implementation of duties. “We want to negotiate in good faith,” he added.
According to Bessed, the duties reduction to 10% also relates to US, Canada and Mexican neighbors.
“We will see what China will do,” the minister said. “I do not call him a trade war, but China escalated” duties, he insisted.