**Washington DC**: President Trump reduces tariffs to 10% on imports from nearly all countries for 90 days but increases tariffs on Chinese goods to 125%. The move pacifies markets and some Republicans but draws fierce criticism from Democrats highlighting economic uncertainty and diplomatic risks.
In a significant policy reversal, President Donald Trump announced on 9 April 2025 that tariffs on imports from all countries except China would be reduced to 10% for a period of 90 days. This decision marks a departure from the aggressive global tariff increases he introduced just a week prior, which had caused considerable upheaval in financial markets and heightened fears of an economic downturn.
The White House made the announcement via President Trump’s social media platform, Truth Social, where he outlined the adjusted tariff structure. Notably, while the tariff rate for most countries will lower, Chinese imports into the United States will face a sharply increased tariff of 125%. President Trump stated, “At some point, hopefully in the near future, China will realise that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”
The immediate market response was positive, with U.S. financial indices rallying and recovering much of the value lost in the previous week’s sell-off. The reversal also garnered support among some Republican lawmakers who had expressed concern about the economic fallout from the original tariff hike.
Senator Thom Tillis of North Carolina commended the decision on social media, describing it as “the right decision” and emphasising the need to address China’s practices such as intellectual property theft, currency manipulation, and unfair trade habits. Similarly, billionaire hedge fund manager and Trump supporter Bill Ackman praised the president’s handling of tariff policy as “brilliantly executed”, despite having earlier cautioned that the initial tariff plan could cause bankruptcies among small businesses.
However, the abrupt policy shift drew criticism and frustration from Democratic leaders and other commentators alike. Senate Minority Leader Chuck Schumer of New York publicly denounced the administration’s approach as erratic and disorganised. Speaking at a press conference, Schumer said, “This is chaos. This is government by chaos. He keeps changing things from day to day. His advisors are fighting among themselves. You cannot run a country with such chaos.” He further highlighted the real-world impact on citizens, stating, “This chaos seems just a game for Donald Trump, but it is very real for people’s lives, people’s retirement, their income.”
Senator Brian Schatz of Hawaii responded with a mixture of sarcasm and criticism on social media, mocking the contradictory justifications that had been provided to defend the tariffs prior to the reversal. In a tweet, Schatz encapsulated the confusion by writing: “OUR PLAN IS WORKING PERFECTLY AND IS JUST A NEGOTIATING TACTIC BUT IT IS ALSO GOING TO BE PERMANENT AND WE WILL BE THE WORLD LEADER IN TEXTILES AND NOW THERE IS A PAUSE AND EVERYONE NEEDS TO CHILL BUT ALSO WE WILL NEVER BACK DOWN AAAAAAHHHHHH.”
Schumer, who has long been critical of China’s trade practices himself, warned that the damage inflicted by the initial imposition of widespread tariffs may be challenging to undo. He expressed concern over the continued 10% tariffs imposed universally, suggesting they risk pushing consumer prices higher. He also questioned the strategy of targeting U.S. allies with tariffs at a time when building coalitions is crucial. “When you have a tariff strategy, it needs to be pinpointed and focused,” Schumer said. “Trump has created a situation where the whole world is against us, and everyone is furious at America. The only way you can bring China to be fairer is by creating alliances and having the world focused on China, instead of the whole world angry at America.”
The tariff policy reversal comes amid ongoing debates regarding the best approach to confront China’s trade practices and protect U.S. economic interests. While the new measure reduces the immediate pressure on global markets, it maintains a stringent stance against China specifically, reflecting continued tension in the bilateral trade relationship between the two nations.
Source: Noah Wire Services
Subscribe to Industry Updates
