New York: US President Donald Trump on Wednesday announced a 90-day tariff pause for most countries after the US-imposed duties set off a massive trade war.
However, it does not apply to China.
Trump has raised the tariff rate for China to 125% with immediate effect. Following which, China also announced an additional import levy on US goods, imposing an 84% tariff from Thursday.
The US president announced the pause on the tariff on social media. This comes after many trading partners responded to the tariff by reaching out for talks rather than retaliating. Trump, however, rebuked China for “lack of respect”.
Meanwhile, US stocks surged to one of their biggest gains since World War II after Trump paused his tariffs. The S&P 500 soared 9.5%. Dow Jones Industrial Average flew nearly 3,000 points higher. The Nasdaq composite jumped 12.2%.
Trump had announced sweeping reciprocal tariffs on countries across the globe last week. The levies ranged from 10 per cent to 49 per cent. His move rattled global markets. It also sparked the start of a massive tariff and trade war.
Trump’s 26% tariff on India came into effect on Wednesday. Authorities in New Delhi are assessing the impact of the US levies. The trade war between China and the US has triggered fears among people as the two have hit each other with additional and retaliatory tariffs. After Trump’s announcement, China first hit the US with a 34% levy, prompting America to impose a 104% additional tariff on Beijing. This resulted in China increasing the 34% retaliatory tariff to 84 per cent.
