President Donald Trump has announced a 90-day pause on tariffs for countries affected by higher U.S. tariffs, while the trade war with China has intensified. In a dramatic shift in policy, just hours after tariffs on approximately 60 of America’s trading partners took effect, Trump stated that he was implementing a universal “reciprocal tariff of 10 percent” as negotiations continued. Simultaneously, he raised tariffs on goods from China to 125 percent, accusing Beijing of showing a “lack of respect” after it retaliated by announcing tariffs of 84 percent on U.S. imports.
This comes a week after Trump announced import taxes on all goods entering the US, in the biggest upheaval of international trade in decades. His plan set a baseline tariff of 10 per cent on all imports — which remains in place — but also higher rates on partners the White House described as the “worst offenders” for what the President considers to be unfair trade practices.
This included the 27-member European Union, Vietnam, South Africa and many more — all of which were due to be on the receiving end of US tariffs ranging from 11 per cent to more than 100 per cent. Major market turmoil followed Trump’s announcement last week, with sell-offs sparking trillions in losses across the world, many Americans fearing price rises and some analysts predicting increased odds of recession.
On Wednesday, before Trump said he would suspend the higher tariffs on goods from countries other than China, the US government saw interest rates on its debt spike to 4.5 per cent — the highest level since February.
By: Graphic.com.gh
