Global markets reacted sharply after U.S. President Donald Trump raised China tariffs to 125% in a surprise announcement on Truth Social, while delaying new tariffs for other countries by 90 days.
Bitcoin climbed 5.6% to $81,636 within an hour of the announcement, reflecting broader market optimism.
In his post, Trump said tariffs on Chinese imports would rise to 125% immediately, claiming China had failed to respect global market rules.
“China has been taking advantage of the United States and other nations for too long,” Trump wrote. “The days of ripping off the U.S.A. are over.”
90-Day Pause on New Tariffs for Other Countries, Says Trump
Alongside the China tariffs hike, Trump announced a 90-day delay for other countries, noting that over 75 nations were in discussions with U.S. officials about trade concerns such as currency policies and non-monetary barriers.
During the 90-day window, Trump authorized a temporary reciprocal tariff of 10% for participating countries.
Markets Rally After China Tariffs Announcement
U.S. markets rallied on the news. The S&P 500 gained over 5.5%, while the Nasdaq rose more than 8%.
It is not yet clear whether any countries other than China will face tariffs above 10% once the 90-day delay ends.
Trump’s message did not offer further specifics, though it implied that countries willing to negotiate could avoid harsher penalties.
The move appeared designed to pressure Beijing while keeping trade discussions open with other partners.
With markets responding positively for now, attention turns to China’s reaction and whether the 90-day window leads to progress.
Frequently Asked Questions (FAQs)
Tariff hikes push companies to reexamine supply chains and consider local production alternatives. This realignment can trigger operational cost increases and lead to higher consumer prices amid strategic adjustments.
Tariffs can alter diplomatic dynamics by shifting trade leverage. Increased duties may prompt nations to rework agreements and adjust economic ties, which might lead to dialogue in global trade circles.
Tariff adjustments may trigger ripple effects across tech and finance sectors. Altered trade costs might prompt shifts in sourcing and investment flows, influencing market stability and altering business landscapes.
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