Trump Announces Temporary Tariff Adjustments Amid Trade Talks
President Donald Trump has reduced tariff rates on imports from most U.S. trade partners to 10% for a period of 90 days, allowing time for trade negotiations to proceed. This announcement came shortly after nearly 90 nations had goods subject to heightened reciprocal tariffs issued by the United States earlier in the day. Additionally, via social media, Trump declared an immediate increase in tariffs on Chinese imports to 125%, citing “the lack of respect that China has shown to the World’s Markets.”
Amidst a “Make America Wealthy Again” trade announcement in Washington, D.C., President Trump unveiled this temporary reprieve on tariffs, aiming to facilitate discussions with U.S. trade allies. Despite this lull, China, identified as America’s third-largest trading partner, retaliated earlier with an 84% tariff rate on U.S. imports. Trump disclosed that over 75 countries have engaged with U.S. officials seeking to negotiate following his latest tariff announcements. In response, stock market indices soared sharply, with the S&P 500 index jumping 7%, marking its most significant single-day gain in five years.
When questioned about his decision, Trump remarked, “Well, I thought that people were jumping a little bit out of line,” suggesting that those affected were overly anxious. Treasury Secretary Scott Bessett noted that this pause was always part of Trump’s broader strategy, despite previous denials from White House officials concerning a suspension.
Meanwhile, Senate Minority Leader Chuck Schumer criticized the president, arguing that Trump is “feeling the heat” from both Democrats and the public regarding the adverse effects of these tariffs. Schumer called the situation “government by chaos,” pointing out the internal conflicts among Trump’s advisers and the uncertainty such erratic policy changes cause. Commerce Secretary Howard Lutnick confirmed that he and Treasury Secretary Scott Bessett were present when Trump composed his social media announcement, which Lutnick described as a momentous communication during his presidency.
Trump’s Full Truth Social Announcement:
In light of the disrespect demonstrated by China towards global markets, I am immediately increasing the tariff on Chinese imports to 125%. I hope China realizes that exploiting the U.S.A., along with other countries, is unsustainable and unacceptable. Conversely, because over 75 countries have engaged with various U.S. departments for negotiations and have refrained from retaliating against us, I am authorizing a 90-day PAUSE and a temporarily lower Reciprocal Tariff of 10%. Thank you for your attention to this matter!