Trump slaps China with 125% levy, announces 90-day pause on tariffs
/ Our Today
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WASHINGTON (Reuters)
US President Donald Trump said on Wednesday (April 9) he is authorising a 90-day moratorium as part of his tariff plan, but was also raising the levy rate for China to 125 per cent, effective immediately.
Wall Street’s main indexes turned sharply higher after Trump’s immediate 90-day pause on tariffs.
At 01:26 pm local time the Dow Jones Industrial Average rose 2,169.93 points, or 5.76 per cent, to 39,801.82, the S&P 500 gained 321.89 points, or 6.46 per cent, to 5,304.66, and the Nasdaq Composite gained 1,229.20 points, or 8.04 per cent, to 16,497.11.
Earlier today, China hit back raising additional duties on American products to 84 per cent, deepening the trade war between the two superpowers.
Beijing also imposed restrictions on 18 US companies, mostly in defence-related industries, adding to the 60 or so American firms punished over Trump’s tariffs.
Trump’s sudden reversal came less than 24 hours after steep new tariffs kicked in on imports from dozens of trading partners. The new trade barriers have hammered markets, raised the odds of recession and prompted retaliatory responses from China and the European Union.
Trump raised tariffs on Chinese imports to 125 per cent from the 104 per cent level that took effect at midnight. At the same time, he said he would lower them on other countries also subject to his new targeted duties.
“I have authorised a 90-day PAUSE, and a substantially lowered reciprocal tariff during this period, of 10 per cent, also effective immediately,” Trump wrote on social media.
Other details were not immediately clear.
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