Why Did Donald Trump Increase US Tariffs On China To 125% And Pause Others?

Image: PTI

US President Donald Trump declared a 90-day pause on higher tariffs for trade partners while increasing tariffs on China to 125 per cent. President Trump took this dramatic U-turn just 13 hours after high duties on 56 nations and the European Union took effect, sparking market turmoil and raising fears of a looming global recession.

“I thought that people were jumping a little bit out of line,” Donald Trump replied when asked why he backed off, Hindustantimes reported.

“They were getting a little bit yippy, a little bit afraid. No other president would have done what I did. Somebody had to do it...They had to stop because it was not sustainable. I'm honoured to have done it. Somebody had to do what we did," he added.

Despite the pause on tariffs for other nations, Trump announced an increase in tariffs on Chinese imports to 125%, up from the 104% rate implemented at midnight—intensifying the ongoing trade standoff between the world's two largest economies.

“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 wrote 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 in a post.