Trump Suspends Tariffs for All Countries Except China
On 9 April 2025, US President Donald Trump announced a 90-day stay on his Reciprocal Tariff Policy. On the other hand, Trump reacted to China’s countermeasures by increasing tariff from 34% to 84%, and then to 125%. The White House clarified that the 125% is on top of the 20% that Trump imposed upon taking office, bringing the cumulative tariff on China to an astounding 145%. For the rest of the world, a 10% ad valorem tariff is still in effect.
China was singled out for tariff torture as follows:
- Increase tariff on China to 145%
- Add de minimis duty on parcels with goods worth less than USD 800 from China or Hong Kong
- Ad Valorem duty of 120% on goods in parcels
- Specific duty of USD 100 per item as from 2 May 2025
- Specific duty of USD 50 to 200 per item on 1 June 20
The duty on parcels is aimed to curb #eCommerce between US and China. Recently, Chinese transnational eCommerce platforms such as Temu and Shein have grown exponentially. The Chinese firms garnered so much market share that they are threatening US firms such as Amazon.
On 8 April 2025, China announced 84% additional tariffs on US goods which will go into effect on10 April 2025. Then, after US increased tariff for Chinese goods, China responded tit for tat.
Officially, Trump declared China is ‘disrespecting the US and abusing the global trade rules.’ China painted Trump as an economic bully to whom nobody should not bend over to.
Some economic analysts believe there is some method in madness in the Trump policy. The greatest rivalry for world supremacy is clearly playing out between US and China and the heaviest tariff imposed by US is specifically targeted at China.
At the same time, US is trying to isolate China and dethrone its position as the top global trading partner of most countries. In 2024, US imported some USD 439 billion worth of goods from China and the heavy tariff will certainly have an impact.
Other investment analysts point to the deep plunge of the stock market in response to Trump’s tariff hike for his change of heart. Indeed, the stock markets did rally a little after Trump announced a pause in the imposition of tariffs.
Most countries have contacted the White House to request ‘some clarification’ and Trump has signaled that he welcomes negotiations. However, China called out Trump as an uncivilized rogue trying to upend the current global trade order.