Trump suspends “reciprocity” tariffs in 75 countries, raising interest rates in China to 125% – Country
U.S. President Donald Trump said Wednesday that he suspended a 90-day “countdown” tariff in 75 countries that have begun trade talks with the U.S., reducing its tariff rate to a 10% benchmark.
The suspension came hours after his global tariff policy came into effect at midnight on Wednesday, ending a week of chaos in global financial markets and uncertainty in the world economy.
Trump also announced that he once again raised tariffs on China, reaching a staggering 125% rate, “based on China’s respect for the world market,” he wrote.
He added that more than 75 countries that have been in contact with the Trump administration have “consulted solutions” to propose solutions to trade issues and that “retaliation against the United States in any way in the form or form of the United States” will be suspended for 90 days and lowered its tariff rate to 10%, which will also be effective immediately. ”
After a sharp loss in the morning, the U.S. market soared Trump's announcement and disappeared on Wall Street for nearly a week's wealth.
The pause will not affect specific duties on the steel, aluminum and foreign automobile sectors, or 25% tariffs on Canadian goods outside of free trade rules, and 10% tariffs on Canadian energy.
The White House did not immediately specify which countries would stop, but U.S. Treasury Secretary Scott Bessent said Vietnam, Japan, South Korea and India were among the countries he and other Trump administration officials were talking to.
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“Every country in the world that wants to come to negotiate, we are willing to hear you, and we will reduce the benchmark tariffs by 10% for them,” he told reporters outside the White House.
“As China insists on upgrading, China will be raised to 125%.
China's latest speed has been the latest tax rate for a trade war since Trump announced his reciprocal tariffs last Wednesday, with the two countries tariffs on each other. The plan, which the White House said, reflects the country's tariffs and trade deficits with the United States, with China's tax rate of 34% of the current 20% tax.
After the U.S. raised its tariffs by 50%, China vowed to match the U.S. 34% tax rate and eventually raised U.S. responsibilities to 84%.
Bessent said China's continued escalation is a “goal of its own” and the result of Trump's overall strategy to force countries to hold a negotiating table.
“You might even say (Trump) put China at a disadvantage,” he said. “They showed the world that they are bad actors. We are willing to work with our allies and trading partners without revenge.
“It's not a hard message: 'Don't take revenge, things will be good.'”
Consumer prices in Canada and around the world may be subject to rapid escalation between the two world's largest economies, a rapidly escalating between Washington and Beijing.
The pause and commitment of global trade talks came after days of chaos and information among Trump administration officials about whether reciprocity tariffs could be reduced or eliminated altogether.
Trump himself has said that his tariffs “give us strong negotiation power” while insisting that they also “stay here.”
“I tell you, these countries are calling us and kissing my ass,” he said in a speech at the National Republican Congressional Committee dinner Tuesday night.
Bessent said Trump “want to participate in it in person” what he said would be a “independent, customized negotiation” that each trading partner would discuss with the United States.
He also refuted the huge fluctuations in global financial markets amid Trump’s last week’s uncertainty.
“The market doesn't understand, that's the highest level,” he said, referring to the higher interest rates in several countries on the tariff list released by the White House last week. “Countries can take into account these levels of we’re going to reduce tariffs and non-trade barriers.
“The only certainty we can offer is that the United States will negotiate in good faith and we assume that our allies will, too.”
Prime Minister Mark Carney, who served as liberal leader in the federal election, said he and Trump agreed that Canada would engage in “full negotiations” on trade and security after Canadians elected a new administration on April 28.
The federal government has retaliated against separate U.S. tariffs on Canadian goods and industries, including 25% tariffs on nearly $60 billion worth of U.S. products.
On Wednesday, Canada's anti-and-come and starts with 25% of U.S.-made vehicles and auto parts, which is not in line with the Canadian-US Mexico Agreement (CUSMA) free trade starts at 25%.
And more…
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