Trump ups China tariffs to 125%, grants 90‑day reprieve globally
Donald Trump has decided to increase tariffs on China to 125 percent. Meanwhile, the American president announced a 90-day suspension of tariffs for other countries.
What you need to know:
- Increased tariffs on China: Donald Trump has decided to immediately raise tariffs on China to 125 percent, citing China's lack of respect for global markets as the reason for this decision.
- Tariff suspension for other countries: The U.S. president announced a 90-day suspension of tariffs for over 75 countries that have contacted American representatives for trade negotiations.
- Reduced mutual tariffs: During this suspension period, mutual tariffs will be reduced to 10 percent, taking immediate effect.
"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," the American president announced on Truth Social.
"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," he emphasized.
Trump also stated that other countries could benefit from the suspension of the recently introduced tariffs. "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," Trump pointed out.
What does this mean for U.S.-China relations?
The decision to impose 125-percent tariffs is another step in escalating trade tensions between the U.S. and China. China had previously missed the deadline set by President Trump to withdraw retaliatory tariffs, prompting the U.S. to take decisive action and introduce 104-percent tariffs on Tuesday. On Wednesday, Trump increased this to 125 percent.
China is the largest trading partner of the U.S. in terms of goods imports. At its peak, Americans imported goods from China worth over 500 billion dollars per year. Trade relations between the United States and China have long been characterized by a significant deficit on the U.S. side. In 2024, American exports to China were valued at about 143.5 billion dollars, while imports from China reached 438.9 billion dollars, resulting in a trade deficit of 295.4 billion dollars. The U.S. exports to China include agricultural goods (such as soybeans and corn), machinery, electronics, and industrial products—though on a much smaller scale.
The U.S. has repeatedly accused China of artificially devaluing the yuan, supporting domestic companies through the state, restricting access to the Chinese market for American businesses, intellectual property theft, and forced technology transfer. All this eventually led to a deep crisis of trust, culminating in the trade war that began in 2018 during Donald Trump's first presidency.
The Trump administration began gradually imposing high tariffs on Chinese products, eventually covering goods worth hundreds of billions of dollars. China responded with retaliatory tariffs. Although some observers hoped for a quick resolution, tensions persisted for months, impacting global trade, supply chains, and financial markets. In January 2020, the so-called "phase one" agreement was signed, in which China committed to increasing purchases of American products, especially agricultural and energy. However, the COVID-19 pandemic quickly sidelined these commitments.
During Joe Biden's presidency, the rhetoric towards China softened, but strategic mistrust remained. The United States maintained many tariffs imposed by Trump while also limiting China's access to advanced technologies—particularly semiconductors and artificial intelligence. Concurrently, there is ongoing competition for influence in Asia, dominance in the high-tech sector, and control over key resources.
Imposing a 125-percent tariff means that the value of the tariff exceeds the value of the goods themselves. In practice, if an importer in the U.S. wants to import a product from China valued at 100 dollars, they will pay an additional 125 dollars in tariff, totaling 225 dollars.
