WASHINGTON, D.C. — April 9, 2025 | By Newspot Nigeria
In a stunning turn of global trade policy, President Donald Trump on Wednesday announced a 90-day pause on tariff hikes for most countries — but dramatically raised tariffs on China to 125%, citing what he called Beijing’s “lack of respect” for global markets and fair trade practices.
The announcement, made via Trump’s Truth Social platform, comes just one week after the president rolled out sweeping “reciprocal tariffs”, which sent nations scrambling to renegotiate trade terms with the United States. Trump claims that more than 75 countries have since reached out to negotiate new deals — with China notably refusing to budge.
China swiftly retaliated with an 84% tariff on U.S. goods, escalating what experts fear could become the largest trade war in modern history.
“At some point, hopefully in the near future, China will realize that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable,” Trump declared in his post.
Markets reacted sharply to the news, with the Dow Jones Industrial Average experiencing volatile swings following the announcement. Although the pause provided short-term relief to Wall Street, uncertainty remains as the global economy adjusts to Trump’s aggressive trade posture.
Key highlights from Trump’s tariff shakeup:
- A new 10% baseline tariff is now in place for most countries, including U.S. neighbors Canada and Mexico.
- Online Chinese retailers like Temu and Shein will now face full tariffs, as loopholes for de minimus goods are closed.
- A 25% tariff on all foreign-made cars was confirmed, affecting nearly half of the U.S. auto market.
- The 125% tariff on Chinese goods is effective immediately.
U.S. Treasury Secretary Scott Bessent defended the move, saying Trump has created “maximum negotiating leverage” by using tariffs as a strategic tool rather than an economic punishment.
Critics, including business leaders and global economists, have warned that the move could trigger inflationary pressures, hurt consumers, and risk pushing the U.S. and global economies toward recession.
Meanwhile, Trump supporters appear divided, with public figures like Elon Musk and Dave Portnoy voicing concerns over the potential long-term damage to U.S. manufacturing and exports.
With the new 10% global rate locked in until July 8, the next 90 days will be crucial in determining whether tailor-made trade agreements can prevent a broader economic fallout — or if the world is headed toward an entrenched trade standoff with China at its center.
Stay tuned as Newspot Nigeria continues to monitor this evolving global economic story.
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