US President Donald Trump announced a three-month suspension of all “reciprocal” tariffs that took effect on 9 April 2025, excluding those applied to China.

The sweeping tariffs will remain for China, the world’s second largest economy and third largest trading partner of the US. Trump further announced that Chinese import tariffs would increase to 125% from 104% after China imposed more retaliatory tariffs on 9 April 2025.

“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,” Trump wrote in his social media post. “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,” he said.

All other countries affected by reciprocal tariffs will see rates reduced to a universal 10%, Trump said.

“I did a 90-day pause for the people that didn’t retaliate because I told them ‘if you retaliate, we’re going to double it’ – and that’s what I did with China,” he said, adding that he thought, “It’s all going to work out amazing.”

However, Mexico and Canada won’t face the 10% tariffs, according to a White House official. Most goods from these countries will still have a 25% tariff unless they comply with the US-Mexico-Canada Agreement.

This move follows recent developments after Trump signed an executive order on 2 April 2025, imposing a 10% baseline tariff on imports from all countries. The move introduced reciprocal tariffs on imports from nations with large US trade deficits, set at about half the rates those countries impose on American goods.

The baseline tariff took effect on 5 April 2025, with reciprocal tariffs following on 9 April 2025.

China vows to “fight to the end” 

Mere hours after the US implemented 104% tariffs, Beijing responded by announcing a sharp increase in its own tariffs on American goods, raising them from 34% to 84%, effective Thursday, 9 April 2025.

In response to recent developments, the State Council Tariff Commission of China issued a statement condemning the US decision to escalate tariffs.

The Commission said, “The US escalation of tariffs on China is a mistake upon mistake, severely infringing upon China’s legitimate rights and interests, and seriously damaging the multilateral trading system based on rules.”

The intensified retaliation follows multiple warnings from China, which vowed to “fight to the end” if the US proceeded with additional tariffs.

Earlier, China’s Ministry of Finance announced the implementation of additional tariffs as a direct response to the reciprocal tariffs previously imposed by the Trump Administration on 4 April 2025.

“This practice of the US is not in line with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice,” China’s State Council Tariff Commission said. 

This was in direct response to Trump’s imposition of two rounds of 10% additional tariffs on all Chinese imports after becoming President for the second time.

Then, China retaliated against the US with new trade measures, including tariffs on imports like chicken, wheat, soybeans, and pork. It added 15 US companies to its export control list, banned dual-use equipment sales, halted US lumber imports, revoked licenses for three soybean companies, and launched an anti-dumping probe into US fiber optic products.