President Trump has given some reprieve to more than 75 countries that have not retaliated against the U.S.’s sweeping reciprocal tariffs through a 90-day pause, but increased duties against China.
A 10% baseline tariff remains on nearly all global imports, the Associated Press reported, citing Treasury Secretary Scott Bessent.
In an April 9 post on Truth Social (embedded below), President Donald Trump wrote: “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.”
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Conversely, he added, for the countries that have not retaliated and instead entered negotiation with the U.S. he has “authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
“The market didn’t understand, those were maximum levels,” Bessent explained to reporters regarding the reciprocal tariffs. “ The countries can think about those levels as they come to us to bring down their tariffs, their non-trade barriers.”
The AP reported that the president has said he would consider exempting some companies hit hard by the tariffs, but when asked how he would make those determinations, he said, “Just instinctively.”
Markets reacted swiftly and substantially following the news of the tariffs pause. The S&P 500 soared 9.52% to settle at 5,456.90 for its biggest one-day gain since 2008 amid the Great Recession. The Dow Jones Industrial Average jumped 7.87% for its biggest one-day jump since March 2020; and the Nasdaq Composite rose 12.16% for its largest one-day jump since January 2001 and second-best day ever.
Read more on the impact of recent tariffs on distribution:
- A Few Words on Elasticity, the Future of Tariffs and Distributors’ Response — April 9 (MDM Premium)
- Who Wins and Loses in the Tariffs New Normal? — April 4 (MDM Premium)
- Beyond Supply: How Distributors Can Add Value as an Information Hub Amid Tariff Turmoil — March 14 (MDM Premium)
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