Sharp Increase in Tariff Rates on Chinese Goods
In a major policy shift announced on Truth Social, U.S. President Donald Trump has increased tariffs on Chinese goods from 104% to 125%, citing China’s disregard for global trade norms. The move, effective immediately, marks a significant escalation in ongoing trade tensions.
Trump stated that China’s current trade conduct is “unsustainable” and hinted at expectations that Beijing may reconsider its approach in the near future.
China’s Retaliation and Reciprocal Tariffs
In response to previous U.S. actions, China had already announced an increase in reciprocal tariffs on U.S. goods—from 34% to 84%—effective April 10. As of now, China has not commented on the most recent tariff spike from the U.S.
Broader Global Impact
Alongside the China-specific tariffs, Trump implemented reciprocal tariffs across more than 180 countries earlier in the day. Key rates include:

46% on goods from Vietnam

20% on the European Union

24% on Japan

32% on Taiwan

These adjustments are part of a larger tariff framework tied to Trump’s “Liberation Day” initiative, which sets a baseline 10% tariff on most imports. Higher rates have been imposed on countries categorized as “worst offenders.”
Temporary Pause for Negotiation
To provide a diplomatic window, the U.S. has authorized a 90-day pause and dropped the reciprocal tariff rate to 10%. According to Trump, this was part of the original plan, allowing countries time to engage in negotiations over trade practices, currency manipulation, and non-tariff barriers.
Treasury Secretary Scott Bessent confirmed that over 75 countries have reached out to U.S. representatives to open dialogue. He emphasized that Trump’s approach was “strategic,” independent of the stock market volatility observed in recent days.
Market and Policy Watch
The announcement has intensified attention on trade developments and global market responses. Tools like the Economics Calendar API can be used to track upcoming diplomatic or trade-related events that may influence financial markets.
Additionally, the Price Target Summary API helps assess how equity analysts are factoring geopolitical developments into their forecasts.
Conclusion
With tariffs escalating and diplomatic efforts in flux, trade dynamics between the U.S., China, and other global partners remain under scrutiny. The next few weeks could prove pivotal as countries weigh their options within the 90-day negotiation window.