“Facing a global market meltdown,” the Associated Press reports, “President Donald Trump on Wednesday abruptly backed down on his tariffs on most nations for 90 days but raised his tax rate on Chinese imports to 125%.”
Trump declared on his Truth Social website, “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.”
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“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. Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!”
Critics blasted the President for having inflicted the week-long imposition of high tariffs that have caused a global trade war, and for appearing to have no actual plan.
“Wow. Trump just caved on the sweeping across-the-board tariffs, issuing a 90-day pause,” observed Sawyer Hackett, an Obama alum and Democratic strategist. “All of that chaos, trillions of dollars evaporated—for nothing at all.”
“Sooo… the ‘back down’ is even higher tariffs on China and retaining a 10% tariff everywhere else?” asked Matthew Gertz, a senior fellow at Media Matters for America, “ie higher prices on everything you buy, small businesses dependent on Chinese imports still annihilated, and the great new manufacturing future isn’t happening?”
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“Chaos aside I think people are still going to notice a 10% tax levied on everything they buy,” Gertz added. “He does seem to have succeeded in getting the markets to swallow a 10% tariff on every other country imposed through an insane and shambolic process for no apparent reason! And vindicated the MAGA crowd’s ‘make it through the day’ strategy.”
“Halting the tariffs seems better than going forward with them, but again how on earth are you expecting anyone to invest in any new manufacturing if there’s no telling what policy will be tomorrow?” asked Bloomberg’s Matthew Yglesias.
“Markets are experiencing Stockholm Syndrome rn [right now] but at some point the real world will have to reckon with the fact that 10% universal tariffs plus 125% tariffs on China (and maybe the EU?) and sector tariffs on steel, aluminum, lumber, and pharmaceuticals are still a huge problem,” noted Aaron Fritschner, deputy chief of staff for U.S. Rep. Don Beyer (D-VA). “Oh and how could I forget- 25% on cars. Which yes, are still on.”
Spencer Hakimian, founder and chief investment officer of the hedge fund Tolou Capital Management, remarked: “So Trump predictably had to cave. And now assets are ripping again. What was the point of the last week? Simple question.”
Reposting video of Trump from Monday, the political action organization Really American wrote: “It was only 2 days ago when Trump was asked if he was open to a pause, and his reply was ‘We’re not looking at that.’ Trump just proved that he has no plan, and is just lurching from crisis to crisis, all caused by him.”
