🇺🇸 Trump Administration Suspends Mutual Tariffs for 90 Days, Except for China 🇨🇳

The Trump administration has announced a 90-day suspension of mutual tariffs, effective from 12:01 AM on April 9th. However, this suspension does not apply to China, which will face an immediate tariff increase to 125%.

Key Points:

• 90-Day Suspension: Mutual tariffs are suspended for 90 days for countries engaging in trade negotiations with the U.S.
• China Exception: Tariffs on Chinese goods will increase to 125% due to perceived unfair trade practices.
• Base Tariff Remains: A 10% base tariff continues to apply.
• Negotiations with Other Nations: Over 75 countries have contacted U.S. trade representatives to negotiate trade solutions.

Trump’s Statement:

President Trump stated on Truth Social that the tariff increase on China is due to its “lack of respect” in global markets. He hopes China will realize it can no longer exploit the U.S. and other countries.

Reasoning Behind the Suspension:

Treasury Secretary Scott Bessent clarified that the suspension was not due to financial market pressures but rather to accommodate the large number of countries seeking tailored trade negotiations. He mentioned potential LNG projects involving South Korea, Japan, and Taiwan as examples of ongoing discussions.

Impact on South Korea:

South Korea, initially facing a 25% mutual tariff, will now be subject to the 10% base tariff for the next 90 days. This provides a temporary reprieve as trade negotiations continue.

Potential Escalation with China:

The decision to increase tariffs on China is expected to further escalate trade tensions between the two countries, with China likely to retaliate with additional tariffs.

In Summary:

The Trump administration’s move aims to address trade imbalances and encourage fair trade practices. While offering a temporary respite to many nations, it signals a tougher stance against China.

Note: LNG refers to Liquefied Natural Gas.