Trump's Tariff Gamechanger Pins China At 125%, Isolates Beijing From Rest

Donald Trump's reciprocal tariffs, which was meant to impose levies against all those who tariff US goods, has taken a fresh turn. It has evolved into a slugfest between China and the United States, with Washington now imposing a punishing 125 per cent tax on all Chinese goods. At the same time, tariffs on other nations have been put on hold.

Announcing this on his social media platform Truth Social, President Trump said that while China will have to bear the brunt of 125 per cent tariffs, Washington has put a 90-day pause on the other 75 countries against whom reciprocal tariffs were imposed on April 2.

CHINA PUNISHED, PUT IN THE CORNER

Slamming China for its "lack of respect" shown to world's markets, President Trump intensified his punishing tariffs against the world's second-largest economy. "Based on the lack of respect that China has shown to the World's Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately," he wrote.

Reiterating his criticism of China for "robbing" and "ripping off" the United States' economy for decades with its punitive tariff structures, unfair trade practices, currency manipulation tactics, and unjustified subsidy norms, President Trump wrote that "At some point, hopefully in the near future, China will realize that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable."

While putting China in the corner, Donald Trump gave respite to the 75 other nations that he had imposed "discounted reciprocal tariffs" on last week, saying that he has ordered an immediate pause on such levies after seeing a humble and proactive approach by these nations in trying to resolve the trade imbalance with the United States.

RESPITE FOR THE OTHERS

Complementing the 75 other nations for "not retaliating in any way" and instead, respecting his suggestions, he wrote, "Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately."

And so, in a move that may well be seen as a softening of his stand, Donald Trump, with the stroke of his pen, changed the entire dynamic of his "Liberation Day" move. Today's move by President Trump also hints at being one to redeem his image across the world, for which he himself was to blame over his vastly unpopular decision, which turned away US allies and made friendly nations revolt by looking for alternatives.

MOVE TO ISOLATE CHINA OVER TARIFFS

Now, President Trump latest pivot has singled out Beijing, and given a clear indication that America has one main adversary - China.

China's Xi Jinping, who has been matching Donald Trump step for step, may find Beijing increasingly isolated. Till Trump's tariffs were acting like a thorn for US allies and other neutral nations, they were gravitating towards China - the second-largest economy and largest exporter of goods. But with Trump's decision to put a "pause" on reciprocal tariffs on most nations, the status-quo is reversed, and they may well gravitate towards America - the largest economy and the oldest democracy.

Within minutes of Donald Trump's announcement today, the US stock markets surged. Wall Street stocks rocketed higher immediately. The S&P 500 surged 6.0 percent higher to 5,281.44, snapping a brutal run of losses since Trump's "Liberation Day" tariff announcement a week ago.