Trump suspends most tariffs but puts pressure on 125% import tax

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Donald Trump announced on Wednesday that he has suspended new tariffs for countries that have not retaliated against the United States for 90 days. More than 75 countries reportedly lend a helping hand with U.S. officials to negotiate trade terms. In this 90-day window, the tariff rates of these countries will face a 10% tariff rate as negotiations continue. Temporary breaks are seen as giving international trading partners the opportunity to enter the table without immediate penalties. However, the softer method does not work in China. Trump made it clear that tariffs on Chinese imports are raising immediately, with the new tax rate now in effect at 125%. The president cited what he believed was unfair trade practices in China and said the increased tariffs were a direct response to the country's actions in global markets. This split approach highlights Trump's broader trade strategy. Negotiate with some and put pressure on others. While countries that have not yet retaliated for a temporary break, China is now facing a tougher economic headwind as trade tensions continue to climb.

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