UPDATE: Trump administration clarified yesterday that total tariff on China is now at 145%. This figure builds on a 20% duty introduced earlier this year, which was imposed in response to China’s alleged involvement in the fentanyl supply chain.
Apple recently shifted a large number of iPhones and other products from its inventory in India and China to the US. It was intended to keep the retail prices the same for as long as possible under the new tariff imposed on all imports to the US.
Now, the Trump administration has halted the tariff hikes for 90 days for all countries that had not retaliated against US tariffs. So, the countries will only face a blanket US tariff of 10% until July. When asked for the reason behind the pause, the US president responded: “People were jumping a little bit out of line. They were getting yippy.”
Beijing raised tariffs on US goods to 84%
But, as mentioned in the title, this isn’t the case for China. The Trump administration has increased the already staggering 104% tariff to an even higher number—125%—and it is being referred to as the initiation of a new trade war between the two countries.
But the reason? As a response to the previously imposed 104% tariff on exports from China, the country slapped 84% tariffs on imports from the US. In response to this, the Trump administration accused Beijing of a “lack of respect” and increased the tariff to 125%, which became effective immediately.
Over 75 countries requested the US federal government “to negotiate a solution” since the Trump administration introduced its plans for the tariff hikes, revealed the US President. Finally, he made his mind to back down, setting the stage for three months of negotiations with several countries.
Most of you are possibly aware of the impact of this tariff change on the stock market. On Wall Street, the benchmark S&P 500 rallied by 9.5%, which is its biggest single-day increase since 2008. The Nasdaq Composite climbed 12.2% – its best day since 2001.
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