Trump pauses tariffs on most nations for 90 days, raises taxes on Chinese imports

WASHINGTON (AP) — Facing a global market meltdown, 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 per cent.

It was seemingly an attempt to narrow what had been an unprecedented trade war between the US and most of the world to one between the US and China.

Global markets surged on the development, but the precise details of Trump's plans to ease tariffs on non-China trade partners were not immediately clear.

Trump's tariffs which had kicked in shortly after midnight, including 104 per cent on products from China, 20 per cent on the European Union, 24 per cent on Japan and 25 per cent on South Korea.

Administration officials have tried to reassure voters, Republican lawmakers and CEOs that the rates are negotiable, but by their own admission that process could take months.

Even as the administration has tried to calm the world, new risks are forming.

China imposed 84 per cent tariffs on goods from the United States. Canada now has auto tariffs to match the 25 per cent being charged by Washington. The EU approved new taxes on US goods after the 25 per cent steel and aluminium tariffs from Trump.

Trump is already calling for more tariffs, looking at copper, lumber and computer chips. In a Tuesday night speech, he said taxes on imported drugs would happen soon.

Follow The Gleaner on X and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.