Trump hikes China tariffs to 125%, freezes others for 90 days

Trump hikes China tariffs to 125%, freezes others for 90 days

President Donald Trump of the USA has announced a 90-day suspension on tariff increases for most nations while imposing a steep 125 per cent tariff on Chinese goods, citing Beijing’s alleged disregard for fair trade practices.

This move, shared on Truth Social, follows his rollout of “reciprocal tariffs,” which prompted numerous countries to seek renegotiated trade agreements.

China, however, responded by levying an 84 per cent tariff on U.S. imports, intensifying fears of a potentially historic trade war. Financial markets reacted dramatically, with the Dow Jones experiencing notable volatility, leaving the global economy uncertain about the implications of Trump’s assertive trade stance.

Key highlights from Trump’s tariff shakeup:

A new 10 per cent baseline tariff is now in place for most countries, including U.S. neighbors Canada and Mexico.

Online Chinese retailers like Temu and Shein will now face full tariffs, as loopholes for de minimus goods are closed.

A 25 per cent tariff on all foreign-made cars was confirmed, affecting nearly half of the U.S. auto market.

The 125% tariff on Chinese goods is effective immediately.

U.S. Treasury Secretary Scott Bessent defended the move, saying Trump has created “maximum negotiating leverage” by using tariffs as a strategic tool rather than an economic punishment.

Critics, including business leaders and global economists, have warned that the move could trigger inflationary pressures, hurt consumers, and risk pushing the U.S. and global economies toward recession.

Meanwhile, Trump supporters appear divided, with public figures like Elon Musk and Dave Portnoy voicing concerns over the potential long-term damage to U.S. manufacturing and exports.

With the new 10% global rate locked in until July 8, the next 90 days will be crucial in determining whether tailor-made trade agreements can prevent a broader economic fallout — or if the world is headed toward an entrenched trade standoff with China at its center.’

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