By Michael Hernandez
WASHINGTON (AA) - US President Donald Trump said Wednesday the US would "immediately" be increasing its tariffs on Chinese imports to 125% as an escalating trade dispute between Washington and Beijing intensified, even as he offered an olive branch to dozens of other nations.
"Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately," Trump said on Truth Social.
"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," he added.
Trump coupled his announcement with another granting over 75 nations a 90-day reprieve from a Wednesday deadline in which they were expected to be hit with tariffs above his 10% baseline, in some cases many multiples higher than that figure.
The president said he was taking the action because the nations had reached out to their US counterparts "to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs," and because they have not retaliated "in any way, shape, or form against the United States."
"I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately," he said.
"125% TARIFF ON CHINA. 90-DAY PAUSE & LOWERED 10% RECIPROCAL TARIFF FOR OTHER COUNTRIES. EFFECTIVE IMMEDIATELY," he said in another post.
Global markets have reeled since Trump rolled out an order last Wednesday enacting his long-promised reciprocal tariff policy. But following news of the pause, US indexes jumped significantly with the Nasdaq up over 7.8% and the Dow rising over 5% in mid-day trading.