The trade war between the United States and China is intensifying. According to the recent announcement from the White House, China now faces a customs duty of 145%. It was stated that this will be an addition to the previous 20% tariff that Trump announced yesterday, which had been raised to 125%. As a partial step back in the global trade war initiated by Trump, tariffs against countries that do not retaliate have been postponed for 90 days.

US President Donald Trump first announced the decision on his social media account yesterday. He shared that the tariff rate on China had increased from 104% to 125%. The reason cited was China’s imposition of an 84% customs duty on the US in retaliation.

TO BE APPLIED AS 145%, the White House has made a new statement regarding the customs duty imposed on China. The White House clarified that the 125% customs duty announced by US President Donald Trump yesterday did not include the existing 20% tariff, making the total customs duty imposed on China 145%.

90-DAY POSTPONEMENT TO 75 COUNTRIES. Moreover, Trump mentioned that the new tax decision has been suspended for approximately 75 countries that do not retaliate for 90 days. He stated the immediate enforcement of this decision and approved the application of a 10% customs duty rate during this time. Speaking at the White House shortly after the decision, Trump mentioned that China wants to make a deal again. Trump remarked, “There is a tremendous desire from other countries, including China. China wants to make a deal. They just don’t know how to do it. President Xi is a proud man.” Trump also touched upon non-retaliating countries, indicating that the new tax decision frightened them. He said, “We will implement a 90-day pause for non-retaliating countries because I told them that if you retaliate, we will double the tariffs. I did the same to China because they retaliated. We will see how it turns out. Within a year or even less, our country will have something unimaginable.” Treasury Secretary Scott Bessent also made a statement regarding the decision, claiming that countries not increasing tariffs for retaliation are being rewarded. Bessent announced that Mexico and Canada will be included in the basic 10% tariff decision. However, the White House declared that these two countries will not benefit from the 90-day pause and will continue to pay a 25% customs duty in non-US trade. Following these decisions, the downward trend in US stock markets reversed.