Tariffs latest: Trump gives reasons for pausing higher tariffs on most countries
Donald Trump says he is raising tariffs on China to 125% “effective immediately”. But in a significant reversal, the US president has frozen all other tariffs at 10% for 90 days – leading stocks to rally.
That’s all for now. We’re pausing our coverage there, following a day of significant escalations in the US-China trade stand-off.
Donald Trump announced an increase on Chinese tariffs to 125%, while announcing a 90-day pause on higher levies for dozens of other countries – see our post below for more on what this all means.
Explained: What’s in Trump’s tariff pause?
There’s been a lot to unpack tonight.
To cut through it all, here’s what Donald Trump’s tariff pause entails:
‘Reciprocal’ tariffs on hold
- Higher tariffs that took effect today on 57 trading partners will be paused for 90 days
- These include the EU, Japan and South Korea, all of which will face a baseline 10% duty instead
- Countries that already had a 10% levy imposed since last week – such as the UK – aren’t affected by the pause
China tariffs increased
- Trump imposed a higher 125% tariff on China
- That’s in addition to levies he imposed during his first term
- China had hit the US with 84% tariff earlier today, following tit-for-tat escalations
No change for Canada or Mexico
- Canadian and Mexican goods will remain subject to 25% fentanyl-related tariffs if they don’t comply with the US-Mexico-Canada trade agreement’s rules of origin
- Compliant goods are exempt
Car and metal tariffs remain
- Trump’s pause doesn’t apply to the 25% tariffs he levied on steel and aluminium in March and on cars (autos) on 3 April
- This 25% tariff on car parts does not come into effect until 3 May
Sectors at risk
Copper, lumber, semiconductors, pharmaceuticals and critical minerals are expected to be subject to separate tariffs, in the same way autos are
Source: https://news.sky.com/
