Trump Slaps 125% Tariff on China, Offers 90-day Pause for 75 Countries

Moneylife Digital Team 10 April 2025

Economy & Nation

Continuing with their tariff-tariff games, US president Donald Trump hit China with a 125% tariff after China retaliated with an 84% tariff on all US goods imported into that country. In a significant shift in trade policy, president Trump also announced a 90-day pause on reciprocal tariffs for all countries except China.

In a post on X, president Trump says, "At some point, hopefully in the near future, China will realise that the days of ripping off the US and other countries is no longer sustainable or acceptable."

"...these countries have not, at my strong suggestion, retaliated in any way, shape, or form against the US, I have authorised a 90-day PAUSE, and a substantially lowered reciprocal tariff during this period, of 10%, also effective immediately," he added.

The announcement came shortly after new levies took effect against around 60 of America's trading partners. President Trump stated he was authorising a universal 'lowered reciprocal tariff of 10%' as trade negotiations continued.

Simultaneously, the US president raised tariffs on Chinese goods to 125%, citing what he described as a 'lack of respect' from Beijing. The move followed China's announcement that it would impose tariffs of 84% on US imports in response to earlier US measures.

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 realise that the days of ripping off…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) April 9, 2025

The development comes one week after the administration introduced import taxes on all goods entering the US, marking what the White House described as the most substantial overhaul of international trade in decades.

Under the plan, a baseline tariff of 10% on all imports remains in place. Higher tariffs were also announced on nations labelled as the 'worst offenders', including the European Union (EU), Vietnam, South Africa and others. These tariffs range from 11% to over 100%.

Initially, China was set to face a 34% tariff increase as part of president Trump's reciprocal tariffs package. However, after Beijing refused to withdraw its promise to impose 34% retaliatory tariffs on US goods, Mr Trump escalated the situation by adding another 50% in duties. This brings the total tariff increase on China to a staggering 84%. With the impending tariff of 104%, China now retaliated with an 84% tariff from 34% on all US goods imported into that country.

According to China's finance ministry the new tariff charges (of 84%) will take effect from midnight on 10th April. China has accused US of bullying practices after president Trump imposed 104% duties on Chinese goods.

White House press secretary Karoline Leavitt said that countries like China, who have chosen to retaliate and try to double down on their mistreatment of American workers, are making a mistake.

Earlier, China's ministry of commerce said it firmly opposes the additional 50% tariffs on Chinese imports, calling it a mistake upon a mistake. The ministry vowed to escalate its retaliation on US exports.

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