Trump pauses higher tariffs for most countries for 90 days – but increases those on China to 125%
Donald Trump has paused his so-called “reciprocal” tariffs on most of America’s trading partners for 90 days – while increasing those on China to 125%.
There have been fears of a global recession and stock markets around the world had plummeted after Mr Trump announced his “Liberation Day” tariffs on Wednesday 2 April.
However, the S&P 500 stock index jumped 9.5% and global markets bounced back following Mr Trump’s announcement on Wednesday that the increased tariffs on nearly all trading partners would now be paused.
Tariffs latest: Trump gives reasons for pausing some tariffs
In a post on his Truth Social platform, Mr Trump said the “90-day pause” was for the “more than 75 countries” who had not retaliated against his tariffs “in any way”.
He added that during this period they would still have to pay a “substantially lowered” 10% tariff, which is “effective immediately”.
It is lower than the 20% tariff that Mr Trump had set for goods from the European Union, 24% on imports from Japan and 25% on products from South Korea.
The UK was already going to face a blanket 10% tariff under the new system.
Mr Trump said the increased 125% tariff on imported goods from China was “effective immediately”.
He added: “At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable.”
Hours after Mr Trump announced the pause on tariffs for most countries, a White House official clarified that this did not apply to the 25% duties imposed on some US imports from Mexico and Canada.
The tariffs were first announced in February and Mexico and Canada were not included in the “Liberation Day” announcements.
Please use Chrome browser for a more accessible video player
Donald Trump says China ‘wants to make a deal’
Hours before the 125% tariff on China was revealed, Beijing said it was increasing tariffs on US goods by 50%.
It meant tariffs of 84% would be enforced on US goods – up from the 34% China had previously planned.
Mr Trump spoke to reporters in the Oval Office. Pic: Reuters
China ‘want to make a deal’
Asked why he posted “BE COOL” on Truth Social hours before announcing his tariff pause, Mr Trump told reporters at the White House: “I thought that people were jumping a little bit out of line.”
“They were getting yippy, you know, were getting a little bit yippy, a little bit afraid,” he added.
Mr Trump continued: “China wants to make a deal, they just don’t know how to go about it.
“[They’re] quite the proud people, and President Xi is a proud man. I know him very well, and they don’t know quite how to go about it, but they’ll figure it out.
“They’re in the process of figuring out, but they want to make a deal.”
Read more:
Why Trump finally blinked
Is there method to madness amid market chaos?
Who’s most likely to see pensions hurt
White House press secretary Karoline Leavitt said the walk back was part of a grand negotiating strategy by Mr Trump.
“President Trump created maximum negotiating leverage for himself,” she said, adding that the news media “clearly failed to see what President Trump is doing here”.
US Treasury Secretary Scott Bessent also insisted Mr Trump had strengthened his hand through his tariffs.
“President Trump created maximum negotiating leverage for himself,” he said.
👉 Listen to Sky News Daily on your podcast app 👈
Mr Bessent said Mr Trump decided to raise tariffs on China because Beijing hadn’t reached out to the US and instead increased its own levies on US goods.
Downing Street said that the UK will “coolly and calmly” continue its negotiations with the US.
A Number 10 spokeswoman said: “A trade war is in nobody’s interests. We don’t want any tariffs at all, so for jobs and livelihoods across the UK, we will coolly and calmly continue to negotiate in Britain’s interests.”
Elon Musk has criticised US President Donald Trump’s tax and spending bill, calling it “outrageous” and a “disgusting abomination”.
The bill, which includes multi-trillion-dollar tax breaks, was passed by the House Republicans in May, and has been described by the president as a “big, beautiful bill”.
The tech billionaire hit out at the tax cuts on his platform X, writing: “I’m sorry, but I just can’t stand it anymore.
“This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.
“Shame on those who voted for it: you know you did wrong. You know it.”
Elon Musk left his ‘special government employee’ role last week. Pic: AP.
In American politics, “pork” is a political metaphor used when government spending is allocated to local projects, usually to benefit politicians’ constituencies.
Musk left the administration abruptly last week after working to cut costs with his team, the newly formed Department of Government Efficiency – known as DOGE – with the ambition of sacking federal workers and cutting red tape.
The White House brushed Musk’s comments aside, claiming they did not surprise the president.
In a press conference on Tuesday, press secretary Karoline Leavitt said that “the president already knows where Elon Musk stood on this bill”.
She added: “This is one, big, beautiful bill.
“And he’s sticking to it.”
The White House on Tuesday asked Congress to cut back $9.4bn in already approved spending, taking money away from DOGE.
Please use Chrome browser for a more accessible video player
What did Musk achieve at DOGE?
The billionaire tweeted: “It will massively increase the already gigantic budget deficit to $2.5 trillion (!!!!) and burden American citizens with crushingly unsustainable debt.”
He also suggested voting out politicians who advanced the president’s tax bill.
“In November next year, we fire all politicians who betrayed the American people,” Musk wrote in another X post.
👉 Follow Trump100 on your podcast app 👈
How Musk’s mission to cut government spending fell flat
Last Thursday, Musk revealed on X that his scheduled time as a “special government employee” was coming to an end.
Before the news broke, Musk’s father told Sky News his son was “not a very good politician”.
But speaking to Gillian Joseph on The World, Errol Musk insisted there was “no rift between Elon and Donald Trump”.
Musk’s time at DOGE was controversial, with drastic cuts to America’s humanitarian efforts sparking particular criticism.
Questions have also been raised about whether the department has actually saved taxpayers as much money as suggested.
Musk initially had ambitions to slash government spending by $2trn (£1.5trn) – but this was dramatically reduced to $1trn (£750bn) and then to just $150bn (£111bn).
Elon Musk brought his son X Æ A-12 to the Oval Office during a press conference earlier this year. Pic: Reuters.
The 53-year-old, who famously brought his son X Æ A-12 to the Oval Office, also expressed frustration about resistance to his ideas and clashed with other senior members of the Trump administration.
He recently told The Washington Post: “The federal bureaucracy situation is much worse than I realised. I thought there were problems, but it sure is an uphill battle trying to improve things in DC to say the least.”
By law, status as a “special government employee” means he could only serve for a maximum of 130 days, which would have ended around 30 May.
Elon Musk has criticised US President Donald Trump’s tax and spending bill, calling it “outrageous” and a “disgusting abomination”.
The bill, which includes multi-trillion-dollar tax breaks, was passed by the House Republicans in May, and has been described by the president as a “big, beautiful bill”.
The tech billionaire hit out at the tax cuts on his platform X, writing: “I’m sorry, but I just can’t stand it anymore.
“This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.
“Shame on those who voted for it: you know you did wrong. You know it.”
Elon Musk left his ‘special government employee’ role last week. Pic: AP.
In American politics, “pork” is a political metaphor used when government spending is allocated to local projects, usually to benefit politicians’ constituencies.
Musk left the administration abruptly last week after working to cut costs with his team, the newly formed Department of Government Efficiency – known as DOGE – with the ambition of sacking federal workers and cutting red tape.
The White House brushed Musk’s comments aside, claiming they did not surprise the president.
In a press conference on Tuesday, press secretary Karoline Leavitt said that “the president already knows where Elon Musk stood on this bill”.
She added: “This is one, big, beautiful bill.
“And he’s sticking to it.”
The White House on Tuesday asked Congress to cut back $9.4bn in already approved spending, taking money away from DOGE.
Please use Chrome browser for a more accessible video player
What did Musk achieve at DOGE?
The billionaire tweeted: “It will massively increase the already gigantic budget deficit to $2.5 trillion (!!!!) and burden American citizens with crushingly unsustainable debt.”
He also suggested voting out politicians who advanced the president’s tax bill.
“In November next year, we fire all politicians who betrayed the American people,” Musk wrote in another X post.
👉 Follow Trump100 on your podcast app 👈
How Musk’s mission to cut government spending fell flat
Last Thursday, Musk revealed on X that his scheduled time as a “special government employee” was coming to an end.
Before the news broke, Musk’s father told Sky News his son was “not a very good politician”.
But speaking to Gillian Joseph on The World, Errol Musk insisted there was “no rift between Elon and Donald Trump”.
Musk’s time at DOGE was controversial, with drastic cuts to America’s humanitarian efforts sparking particular criticism.
Questions have also been raised about whether the department has actually saved taxpayers as much money as suggested.
Musk initially had ambitions to slash government spending by $2trn (£1.5trn) – but this was dramatically reduced to $1trn (£750bn) and then to just $150bn (£111bn).
Elon Musk brought his son X Æ A-12 to the Oval Office during a press conference earlier this year. Pic: Reuters.
The 53-year-old, who famously brought his son X Æ A-12 to the Oval Office, also expressed frustration about resistance to his ideas and clashed with other senior members of the Trump administration.
He recently told The Washington Post: “The federal bureaucracy situation is much worse than I realised. I thought there were problems, but it sure is an uphill battle trying to improve things in DC to say the least.”
By law, status as a “special government employee” means he could only serve for a maximum of 130 days, which would have ended around 30 May.
A manhunt is under way for an ex-soldier suspected of kidnapping and murdering his three daughters in Washington state.
Officers said Travis Decker, 32, has “extensive” military training and could pose a “significant risk” but they aren’t sure if he’s armed.
Police, the FBI and US marshals are all involved, with drones and aircraft deployed to scour remote forested areas.
The alarm was raised on Friday when the girl’s mother reported her daughters – aged nine, eight and five – missing after Decker didn’t return following a planned visit of three hours.
Wenatchee police began the search over the weekend, looking for the white pick-up Decker is believed to live out of.
The truck was found on Monday near a campground west of Leavenworth, about 70 miles east of Seattle, with the girls’ bodies found in “relatively close proximity”, according to police.
Evelyn, Paityn and Olivia Decker attended Lincoln Elementary in Wenatchee school district.
Decker is said to have ‘extensive’ military training. Pic: Wenatchee Police Department
Their mother told police the girls didn’t return as planned at 8pm on Friday and that Travis Decker’s phone went straight to voicemail.
A detective for the Wenatchee force said she “expressed concern because Decker reportedly has never done this before and… is currently experiencing some mental health issues”.
Officials said Decker joined the US Army in 2013 and moved to the Washington National Guard in 2021, becoming part time in the last few years, but stopped attending drills about a year ago.
Read more from Sky News:
Colorado attack suspect’s wife and children detained
King Of The Hill actor shot dead in Texas
The public have been warned to not approach Decker and to call 911 immediately.
Questions are being asked about whether time was wasted in escalating the search after police requested an amber alert from state patrol on Friday night but it didn’t meet the criteria.
It wasn’t until Wenatchee detectives provided extra information on Saturday that an endangered missing person alert was issued.
Washington State Patrol public affairs director Chris Loftis said a parent not returning their child on time was a “rather common occurrence and not something where you just automatically assume abduction”.
“We’re people too, you know, so the loss of a child, the loss of two children, the loss of three children is… devastating,” he said.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway