Trump Adjusts Reciprocal Tariffs, Raises Duties on China to 125%

 Trump

US President Donald Trump has adjusted his reciprocal tariff policy, reducing duties to 10% for most countries while sharply increasing tariffs on Chinese imports to 125%.

Trump announced the changes via social media on Wednesday, stating that higher reciprocal tariffs would be paused for 90 days for nations that have not retaliated against the US.

"More than 75 countries have contacted US representatives, including the Departments of Commerce, Treasury, and the USTR, to negotiate trade-related matters. Since these countries have not retaliated against the US in any form, I have authorized a 90-day pause and significantly lowered reciprocal tariffs to 10%, effective immediately," Trump said in his message.

China Faces a Steep Increase

However, the tariff rate for Chinese imports was increased to 125%, effective immediately. The decision follows China’s announcement earlier in the day that it would raise tariffs on US-origin imports to 84% from 34%.

US Treasury Secretary Scott Bessent justified the move, stating, "China is the most imbalanced economy in the history of the modern world, and they are the biggest source of the US trade problem. They pose a challenge not just to the US but to the global economy."

Canada and Mexico Exempt from New Measures

Despite the adjustments, Canada and Mexico remain subject to a 25% tariff on goods that do not comply with the United States-Mexico-Canada Agreement (USMCA), as well as the existing 25% tariffs on steel, aluminum, and foreign automobiles.

US Commerce Secretary Howard Lutnick emphasized that other nations were willing to work with the US to resolve trade imbalances. "The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction," he stated.

The latest changes signal a shift in the Trump administration’s approach to trade, maintaining pressure on China while extending a temporary reprieve to other global trading partners. Industry analysts expect further negotiations in the coming months as the global trade landscape continues to evolve.