Trump Escalates Tariffs on China to 125% Amid Global Trade War Pause

By DAYO ADESULU

In a dramatic twist in the global trade war, U.S. President Donald Trump escalates tariffs on China to 125% while granting a 90-day tariff pause for most other countries. The announcement, made Wednesday via his Truth Social platform, sent Wall Street soaring even as tensions with Beijing reached new heights.

Trump Escalates Tariffs on China: Global Pause But China Targeted

President Trump escalates tariffs on China, revealing that over 75 countries had reached out to negotiate, prompting his administration to pause further tariff hikes for 90 days. However, he made it clear that China remains an exception.

“I have authorized a 90-day PAUSE,” Trump said, adding that only a flat 10% tariff would apply to most countries. “China is still ripping off the United States,” he claimed, justifying the steep hike.

This move follows China’s retaliation earlier in the week, raising tariffs on American imports to 84%, after the U.S. imposed 104% tariffs on Chinese goods. Now, with an immediate increase to 125%, the tariff battle between the world’s two largest economies has intensified.

Trump Escalates Tariffs on China: Markets React to Trump’s Trade Pivot

Following Trump escalates tariffs on China and the surprise tariff pause announcement, the S&P 500 surged by 6.0%, reaching 5,281.44, snapping a week-long losing streak. European and Asian stock markets, which had fallen earlier amid trade uncertainties, also saw recovery.

U.S. bond yields spiked, reflecting investors’ shifting sentiment. Despite market volatility, Trump urged Americans to stay calm:

“BE COOL! Everything is going to work out well,” he said.

European Union Hits Back But Avoids Direct Retaliation

The European Union also responded with new countermeasures, targeting €20 billion worth of U.S. goods, including soybeans, motorcycles, and beauty products. The bloc had been hit by U.S. tariffs on steel and aluminum but chose not to retaliate against the additional 20% tariffs that came into effect at midnight Wednesday.

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Trump has often accused the EU of unfair trade practices, claiming it was “created to screw the United States.”

Trump Boasts Global Interest in New Deals

According to the U.S. president, nations such as Japan and South Korea are actively engaging Washington to negotiate new, tailored trade deals. In a private dinner with Republicans, Trump reportedly said:

“These countries are calling us up kissing my ass.”

Meanwhile, Treasury Secretary Scott Bessent warned other countries that aligning with China would be self-destructive:

“Aligning with Beijing would be cutting your own throat,” he told a global banking summit.

China Denounces U.S. Tariff Moves

In response to Trump escalates tariffs on China, the Chinese finance ministry issued a stern statement:

“The tariff escalation against China by the United States simply piles mistakes on top of mistakes.”

China also issued a travel warning for its citizens, advising them to assess risks before traveling to the U.S.

U.S. Stands Firm as Tensions Grow

On Trump escalates tariffs on China, U.S. Defense Secretary Pete Hegseth, speaking from Panama, accused China of growing threats amid increasing disputes over global trade and influence, including disputes around the Panama Canal.

Trump, a long-time critic of China’s trade practices, insists his aggressive approach is necessary to revive U.S. manufacturing, which he believes has suffered under years of unfair competition.

“The days of ripping off the U.S.A. and other countries are over,” Trump said.

Conclusion: Trade War Deepens Despite Temporary Relief

While Trump’s 90-day pause offers a temporary breather for global markets, his decision to raise tariffs on China underscores the ongoing hostility. With China standing firm and other countries adjusting strategies, the full impact of this escalating trade war remains to be seen.

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