Trump stops higher tariffs in 90 days, but the Chinese trade war escalates

President Donald Trump has announced a 90-day pause for countries affected by higher US rates, but the trade war with China escalates.

In a dramatic change in politics, just hours after levies against approximately 60 of the trading partners in America, Trump said he was allowed a universal “reduced reciprocal tariff of 10%” as negotiations continue.

At the same time, he increased the tariffs for goods from China to 125%, accusing Beijing of “lack of respect” after avenging, saying he would impose 84% tariffs on US imports.

This comes a week after Trump announced taxes on the import of all goods entering the USIn the largest cataclysm of international trade in decades.

His plan sets a 10% base tariff on all imports – which remains in force – but also the higher percentage of the partners, which the White House described as “the highest offenders” so that the president can consider unfair commercial practices.

This included the European Union, Vietnam, South Africa and many more – all this had to be at the end of the tariffs to obtain US tariffs, ranging from 11% to more than 100%.

The main turmoil on the market followed Trump’s message last week, with sales igniting trillions worldwide, many Americans fear raising prices, and some analysts predict increased chances of recession.

On Wednesday, before Trump said it would stop higher rates for goods from countries other than China, the US government saw interest rates up to 4.5% -the highest level since February.

Hours later, when the change is announced, US shared rockets with S&P 500 erecting 7% in the afternoon tradeS Later, she closed the day trade by 9.5%, while Dow Jones increased by 7.8%.

Declaring the latest iteration of his social plan plan, Trump said he was allowed a 90-day break for tariffs for countries that did not avenge his levies.

The additional Tariff for Beijing, he said, will be in force immediately. “At one point, we hope in the near future, China will realize that the days of detachment of the US and other countries are no longer sustainable or acceptable,” he writes.

The US Department of Finance Secretary Scott Beshen insisted that the change in policy was not influenced by global falls, but the Higher Democrat Chuck Sumer said the decision shows that Trump “tries and withdraws.”

Speaking outside the White House, Trump later stated that changes in his tariff policy should be made “because people” become with MIPs “.

“I made a 90 -day pause for people who did not take revenge because I told them” if you avenges, we would double it ” – and I did it with China,” he said, adding that he thinks “everything will work out.”

In the United Kingdom, which was not affected by the changes, as it was already on the list of countries receiving the main rate of 10%, a speaker of No. 10 stated that “the trade war is in the interests of anyone.”

A source also said that development in Washington shows that “cool and tranquility can be paid.”

Continuing upholding between China and the US – the two largest economies in the world – began when Trump announced new rates last week.

China was hit with an additional 34% tariff, at the top of a 20% tax that the president had introduced earlier this year. Beijing, however, quickly avenged a 34% tariff for US imports to China.

In response, Trump threatened an additional 50%, with a total amount of up to 104% on Tuesday if Beijing did not retreat. China did not change the course and said it would “fight until the end” if the US “insists on provoking a Tariff War or Commercial War.”

Just hours after 104% of the US rates began earlier, Beijing announced that it would collect its own tariffs for American goods from 34% to 84% from Thursday.

China Foreign Ministry spokesman Lin Jian said on Wednesday that the United States is “continuing to impose tariffs on China in a violent way.”

He said China opposes such “harassment of practices” and the US should show “attitude of equality, mutual respect and reciprocity” if he hopes to solve problems through negotiations.

The deteriorating relations between the two countries can see that trade in goods drops to 80% – a decline of $ 466 billion ($ 363 billion), according to the world’s trading organization forecasts.

“Our estimates, informed by the latest developments, emphasize the essential risks associated with further escalation,” said Dr. Ngozi Okozho-Wvel, Head of the WTO.

Far from China, Trump’s latest plans have not affected other recently announced tariffs that are already playing.

These include 25% taxes on the import of cars and car parts entering the United States, which came into force on April 2, and another 25% tariff for the entire import of steel and aluminum.

Earlier on Wednesday, the European Union approved the first set of retaliatory rates against the United States, which is due to come into force on April 15. Bloc, on the list of Trump’s sales partners “The Bigger Crime,” had to receive a 20%personalized tariffs.

But since the EU vengeance tariffs have not yet entered into force, the White House includes it on the list of countries that will be limited to 10%.

Meanwhile, the so -called base rate has never applied in Canada and Mexico – key trading partners of the United States – and a White House employee said none of them was on the line to receive a 10% base rate now.