Trump's trade war is now all about China

Key Points

  • President Trump's trade war is now focused on China, with a total base tariff of 145% on Chinese imports.
  • The White House confirmed the higher tariff rate after initial confusion over the exact percentage.
  • Trump paused additional "reciprocal" tariffs for all countries except China, aiming to isolate China further.
  • The escalation in tariffs reflects Trump's campaign promises and his administration's strategy to address trade imbalances with China.

Summary

President Trump has escalated his trade war, focusing primarily on China with a confirmed total base tariff of 145% on Chinese imports. This adjustment came after initial reports suggested a 125% rate, with the confusion arising from separate duties imposed earlier in the year. The White House clarified the tariff rate through an executive order, which also maintained a 10% baseline duty on nearly all other countries. Trump's decision to pause additional tariffs for countries other than China underscores his administration's strategic intent to isolate China economically. This move aligns with Trump's campaign promises of imposing high tariffs on China, which he has now more than doubled. The focus on China has been echoed by his team, with actions aimed at pressuring China into negotiations. Despite the tariff hikes, market reactions have been volatile, with the S&P 500 experiencing significant fluctuations. The next 90 days are expected to involve continued negotiations, with uncertain outcomes regarding the resolution of trade tensions with China.

yahoo
April 10, 2025
Stocks
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