President Donald J. Trump announced on Wednesday that the United States will now impose a total tariff of 125 percent on Chinese imports, after raising the total trade duty to 104 percent less than 12 hours earlier. In addition, Trump signaled that he would reduce the tariffs imposed on countries that have not moved to retaliate against the U.S. for a 90-day period, as each engages in bilateral talks with the White House.
“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. 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 in a post on Truth Social, in response to China raising retaliatory tariffs on the U.S.
Notably, the increasing tariff rate on Chinese goods appears to be forcing the People’s Bank of China (PBOC) into a series of emergency devaluations of the Chinese yuan, leading to increasing concerns for the Chinese economy.
