Trump suspends tariff hike for 90 days

Import tariffs on China raised again to 125%

Washington DC (USA) – US President Donald Trump, who had recently imposed import tariffs on countries around the world, has now announced a 90-day pause on import tariffs for 75 countries; however, China has been excluded from this relief. In fact, the tariff on Chinese imports, which was previously raised to 104%, has now been further increased to 125%. This indicates a direct escalation in tensions between the US and China. India is among the 75 countries receiving the 90-day pause.

🚨 Trump imposes 125% tariff on China 🇨🇳, while putting a 90-day hold on 'reciprocal' tariffs for most other nations.

Trade tensions escalate as the U.S. takes aim at China#USChina #TradeWar #GlobalEconomypic.twitter.com/vkBt9B8yKw

— Sanatan Prabhat (@SanatanPrabhat) April 10, 2025

China will soon realise that the days of exploiting other nations are over : Trump

In a social media post, Trump said ‘Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable. Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately (sic)’.

The US Secretary of the Treasury Scott Bessent said that countries willing to negotiate with the US will face reduced import tariffs of up to 10%. Some items from Canada and Mexico, previously taxed at 25%, will now fall under the 10% category.

Why was the tariff hike paused ?

1. Several of Trump’s close aides were opposed to the tariff increase.

2. The hike was creating conditions for a potential recession and rising inflation in the US.

3. The stock market witnessed a sharp decline. As a result, Trump’s advisors, including industrialists and business figures like Elon Musk, recommended halting the tariff hike.

4. Many leaders from Trump’s Republican Party also opposed the tariff policy.

5. Crude oil prices dropped significantly, and the economic situation in the US was beginning to resemble the COVID-era downturn.

6. American banks warned that the tariffs would lead to inflation, rising unemployment, and a recession in the country.

Alternative to Chinese goods will be needed

The US imports goods worth $440 billion from China. With the imposition of 125% import tariffs on Chinese products, the impact on the US will be substantial. Prices of Chinese goods will skyrocket, making them unaffordable for both consumers and businesses. As a result, the US will need to source these goods from other countries and will have to achieve this within the next 90 days.