The tariff fight between the U.S. and China flared up again Wednesday. President Donald Trump announced a jump in tariffs on Chinese goods to 125%. He said it was due to China’s "lack of respect" for America. At the same time, Trump paused and lowered tariffs on other countries.
"At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable," Trump wrote on Truth Social.
He added that over 75 countries have contacted U.S. officials to work out trade issues. These include tariffs, trade barriers, and currency manipulation. Trump said those countries, "at my strong suggestion," have not retaliated against the U.S.
Trump said tariffs on those cooperating countries would be paused for 90 days. During this time, they’ll face a reduced 10% tariff rate. This pause is meant to encourage cooperation.
Just hours before Trump's new move, China announced a tariff hike on U.S. goods. Their rate jumped from 34% to 84%. It was a direct response to Trump’s midnight tariff hike.
Trump had already hit China with a 104% tariff early Wednesday. It took effect just after midnight. This aggressive move was a major trigger for China’s reaction.
Secretary of Commerce Howard Lutnick backed Trump’s strategy. He posted on X saying the world, aside from China, is ready to work with Trump. "Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency," Lutnick said.
The new U.S. tariffs also hit the European Union, Japan, and South Korea. Europe saw a 20% tariff, Japan 24%, and South Korea 25%. These went into effect Wednesday as well.
In response, the European Union approved retaliatory tariffs on $23 billion of U.S. goods. They called them “countermeasures.” Still, the EU said it was willing to drop them if the U.S. agreed to a fair, negotiated deal.