Trump suspends “reciprocity” tariffs in 75 countries, raising interest rates in China to 125% – Country
U.S. President Donald Trump said Wednesday that he suspended a 90-day “countdown” tariff in 75 countries that have begun trade talks with the U.S., reducing its tariff rate to a 10% benchmark.
The suspension came hours after his global tariff policy came into effect at midnight on Wednesday, ending a week of chaos in global financial markets and uncertainty in the world economy.
Trump also announced that he once again raised tariffs on China, reaching a staggering 125% rate, “based on China’s respect for the world market,” he wrote.
“I made a 90-day pause for people who have not retaliated because I told them if you are going to retaliate,” Trump said outside the White House late Wednesday. “That’s what I did to China because they did retaliate.
“It's possible to make a deal with everyone,” he added. “Everyone will have a fair deal, but they're not fair to the United States. They're attracting us to dryness and you can't.”
The U.S. market soared after sharp losses in the morning and the wealth that disappeared in the past week on Wall Street, which included billions of dollars in investment.
The pause will not affect specific duties on the steel, aluminum and foreign automobile sectors, or 25% tariffs on Canadian goods outside of free trade rules, and 10% tariffs on Canadian energy.
The White House did not immediately specify which countries would stop, but U.S. Treasury Secretary Scott Bessent said Vietnam, Japan, South Korea and India were among the countries he and other Trump administration officials were talking to.
“Every country in the world that wants to come to negotiate, we are willing to hear you, and we will reduce the benchmark tariffs by 10% for them,” he told reporters outside the White House.
Get the daily national news
Get news, politics, economics and current events titles delivered to your inbox every day.
“As China insists on upgrading, China will be raised to 125%.
China's latest speed has been the latest tax rate for a trade war since Trump announced his reciprocal tariffs last Wednesday, with the two countries tariffs on each other. The plan, which the White House said, reflects the country's tariffs and trade deficits with the United States, with China's tax rate of 34% of the current 20% tax.
After the U.S. raised its tariffs by 50%, China vowed to match the U.S. 34% tax rate and eventually raised U.S. responsibilities to 84%.
Trump is optimistic that a deal could eventually be reached with China, but Beijing will have to withdraw from retaliation and seek talks with his administration.
Bessent said China's continued escalation is a “goal of its own” and the result of Trump's overall strategy to force countries to hold a negotiating table.
“You might even say (Trump) put China at a disadvantage,” he said. “They showed the world that they are bad actors. We are willing to work with our allies and trading partners without revenge.
“It's not a hard message: 'Don't take revenge, things will be good.'”
Consumer prices in Canada and around the world may be affected by a rapidly rising trade war between Washington and Beijing, the two largest economies in the world.
Pause for a few days of chaos
The pause and commitment of global trade talks came after days of chaos and information among Trump administration officials about whether reciprocity tariffs could be reduced or eliminated altogether.
Trump himself has said that his tariffs “give us strong negotiation power” while insisting that they also “stay here.”
“I tell you, these countries are calling us and kissing my ass,” he said in a speech at the National Republican Congressional Committee dinner Tuesday night.
Bessent said Trump “want to be personally involved” and he would be talking about “independent, customized negotiations” that he discussed with each trading partner.
He also refuted the huge fluctuations in global financial markets amid Trump’s last week’s uncertainty, which he believes is part of the overall strategy and a sign of Trump’s “courage” as a negotiator.
“The market doesn't understand, that's the highest level,” he said, referring to the higher interest rates in several countries on the tariff list released by the White House last week. “Countries can take into account these levels of we’re going to reduce tariffs and non-trade barriers.
“The only certainty we can offer is that the United States will negotiate in good faith and we assume that our allies will, too.”
Trump himself said he showed “flexibility” in his approach.
“I can say, 'It's a wall, I'm going to go through that wall, I'll go through anyway,' you keep going, you can't go through the wall,” he said. “Sometimes you have to be able to drive under the wall, on the wall or on the wall.”
When asked about his future decisions on possible exemptions, including a severe blow to U.S. companies, Trump replied: “Just instinctively.”
Prime Minister Mark Carney, who served as liberal leader in the federal election, said he and Trump agreed that Canada would engage in “full negotiations” on trade and security after Canadians elected a new administration on April 28.
The federal government has retaliated against separate U.S. tariffs on Canadian goods and industries, including 25% tariffs on nearly $60 billion worth of U.S. products.
On Wednesday, Canada's anti-and-come and starts with 25% of U.S.-made vehicles and auto parts, which is not in line with the Canadian-US Mexico Agreement (CUSMA) free trade starts at 25%.
& Copy 2025 Global News, a division of Corus Entertainment Inc.
