Donald Trump announced a 90-day suspension of the high tariffs imposed on dozens of countries, with a flat 10% tariff for all, except China, where tariffs were increased to 125% from 104%, escalating the trade war with the country. [1], [2], [3]
He stated this would begin negotiations with these countries, but according to the New York Times, he feared an ‘economic disaster.’
Meanwhile, U.S. Treasury Secretary S. Bessent and other officials, including Vice President J. D. Vance, pushed for a more cautious approach to tariffs, which would also signal that the president is serious about addressing ‘trade imbalances’ with other countries.
Stock markets worldwide, which had earlier fallen sharply due to D. Trump’s tariffs, stabilized and recovered.
Trump now aims to isolate China as the “worst offender” in trade and focus on the trade war with it, as China raised tariffs on the U.S. to 84%, up from 34%, in retaliation.
Trump’s initial plan was for a 10% tariff to be the baseline for all imports, while countries he labeled as the “worst offenders” due to “unfair trade practices” would face higher rates.
These included the European Union of 27 member states, Vietnam, South Africa, and several others, who were set to face U.S. tariffs ranging from 11% to over 100%.
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