New US Tariff on China Sparks Tensions While Most Other Nations Get a Break
The new US tariff on China just got a lot tougher — even as President Donald Trump gave most other countries a temporary break from his sweeping trade policies.
In a major twist, President Trump announced a 90-day pause on higher tariffs for countries that didn’t retaliate against recent U.S. trade actions. But China? It’s facing a much steeper price. The White House has hiked tariffs on Chinese imports to a jaw-dropping 125%, accusing Beijing of showing “a lack of respect” and hitting back with their own harsh measures.
This move comes shortly after Trump imposed new import taxes on all goods entering the U.S., calling it the biggest shake-up in global trade in decades. His plan introduced a 10% baseline tariff on all imports, but countries labeled as the “worst offenders” were set to get hit even harder — some with rates over 100%.
Countries like the European Union, Vietnam, and South Africa were originally on the list for heavy tariffs. But after Trump’s sudden policy shift, they’re now spared — at least for now — from the worst of it.
Meanwhile, the new US tariff on China has caused markets to whipsaw. After the initial announcement last week, stock prices tanked and fears of a recession grew. But once Trump hit pause on tariffs for most nations (excluding China), Wall Street cheered. The S&P 500 jumped 9.5%, and the Dow surged nearly 8%.
“China’s Days of Ripping Off the U.S. Are Over”
Trump took to Truth Social to share his latest stance, saying the 90-day tariff pause only applies to countries that didn’t fight back. As for China, the new 125% tariff is already in effect. “At some point, China will realize the days of ripping off the U.S.A. are no longer sustainable,” he wrote.
Still, not everyone was impressed. Senate Democrat Chuck Schumer called the decision a sign that Trump was “reeling and retreating,” while Treasury Secretary Scott Bessent denied that financial market chaos had anything to do with the change in strategy.
Outside the White House, Trump explained his move by saying, “People were getting yippy,” and emphasized that retaliators like China would face double penalties. “It’s all going to work out amazing,” he said.
China Fires Back
China didn’t sit still. After Trump’s 104% tariff threat, Beijing doubled down. It’s now imposing 84% tariffs on U.S. imports. Chinese officials blasted the U.S. for “abusive” tactics and warned they would “fight to the end” if Washington insists on starting a full-blown trade war.
According to the World Trade Organization, if the tension continues, U.S.-China trade could plummet by up to 80%, wiping out nearly $466 billion in trade value.
Other Countries Still Facing Tariffs – But Less Harsh Ones
While China takes the brunt of the punishment, Trump’s administration is still keeping several tariffs in place elsewhere. These include:
-
A 25% tariff on cars and car parts, which started April 2
-
A 25% tariff on steel and aluminum
-
Tariffs of up to 20% on the EU, which were paused after the bloc delayed retaliatory measures
Interestingly, Canada and Mexico, two key U.S. trade allies, were never included in the baseline 10% tariff — and they won’t be now, either.
What’s Next in the Trade War?
With the new US tariff on China now dramatically higher, the battle between the world’s two biggest economies seems far from over. As markets, governments, and global businesses wait for what happens next, one thing is clear: this trade war is real — and it’s just getting started.
