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Friday, April 18, 2025

Trump punishes Xi with Jumbo tarrifs, a tariff stop for allies

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In a dramatic escalation of trade tensions, U.S. President Donald Trump has announced an immediate 125% tariff on all Chinese imports, retaliating against Beijing’s recent decision to hike duties on American goods to 84%. The move, declared on Trump’s social media platform Truth Social, marks a significant shift in the ongoing economic battle between the world’s two largest economies.

Justifying the steep tariff hike, Trump accused China of “robbing” and “ripping off” the United States for decades through unfair trade practices, currency manipulation, and unjustified subsidies. He criticized Beijing’s “lack of respect” for global markets and warned that China must eventually recognize that its current trade policies are “no longer sustainable or acceptable.”

While the new tariffs are aimed squarely at China, Trump has also introduced a contrasting policy for over 75 other countries that were subjected to his administration’s “reciprocal tariffs” earlier this month. Acknowledging their diplomatic efforts to resolve trade disputes, Trump has authorized a 90-day pause on these tariffs. During this period, the reciprocal tariff rate on imports from these nations will be significantly reduced to just 10%.

Trump emphasized that this decision was influenced by the willingness of these countries to engage in negotiations with U.S. trade officials rather than retaliating with countermeasures. “More than 75 countries have called representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution,” he noted, adding that their cooperative approach played a key role in his decision to ease tariff pressures on them.

With this latest tariff increase on China, the economic standoff between Washington and Beijing is expected to escalate further, with potential repercussions for global markets.

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