- Trump paused tariffs for 90 days on most countries but raised China’s tariff rate to 125% over ongoing trade tensions.
- China responded by hiking tariffs on U.S. goods to 84%, escalating the trade war between the two nations.
- Trump claims over 75 countries are now seeking trade talks with the U.S., while encouraging Americans to “BE COOL!” amidst market chaos.
In a surprising twist on Wednesday, President Donald Trump hit the brakes—at least for now—on his sweeping tariff campaign, announcing a 90-day pause for most countries. But not for China. Nope. Instead, he took things up a notch, raising tariffs on Chinese imports from 104% to a jaw-dropping 125%.
“Based on the lack of respect that China has shown to the World’s Markets,” Trump posted on TruthSocial, “I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately.” He also tossed in a jab about how China and others need to quit taking advantage of the U.S.—something he says won’t fly anymore.
Global Pressure Mounts, China Fires Back
The move came after Trump claimed that 75 countries had already reached out to negotiate trade terms—stuff like tariffs, currency policy, and trade barriers. His original tariff blueprint, announced last week, included a 10% baseline duty on all imports and extra charges for individual nations. For China, that meant an added 34% on top of existing 20% tariffs.
Beijing didn’t take that sitting down. They responded with their own 34% tariffs on U.S. goods. And when Trump followed up with another 50% threat, China clapped back again—upping their own tariffs to 84%, effective April 10.
So yeah, the trade war just got even messier.
Wall Street Rebounds, Trump Tells America to “BE COOL!”
Despite the drama, the markets… oddly rallied. Stocks roared higher, while bonds sold off—investors seemed to breathe a sigh of relief over the 90-day tariff pause (on everyone else, at least). And as if on cue, Trump took to TruthSocial again:
“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”
Later that day, he doubled down with a classic rallying cry: “THIS IS A GREAT TIME TO BUY!!!”
The Bigger Picture
While most countries got a temporary pass, Trump’s message to China was clear: the gloves are off. The U.S. goods trade deficit with China ballooned to $295.4 billion in 2024, up nearly 6% from the year before. And for Trump, that number is more than just data—it’s fuel for his tariff fire.
What happens next? Hard to say. With China digging in and Trump showing no signs of letting up, the next few weeks could get real bumpy—economically and diplomatically.
