US Tariffs on China Surge in 24 Hours

In just one day, U.S. President Donald Trump sharply raised taxes on goods from China. He started by increasing them to 125%, on top of an existing 20%. Then, he quickly raised them again to 145%.

This aggressive move came amidst escalating tensions with China, who had declared it would “fight to the end” if no trade deal was reached. Abruptly changing course, Trump then declared a 90-day pause on elevated tariffs for most nations, while still imposing a 10% baseline tariff, notably excluding China from this temporary reprieve.

The European Union, which had planned retaliatory measures against U.S. steel and aluminum tariffs, subsequently held off on these actions. While the Trump administration defended the tariffs as a negotiation tactic, acknowledging potential “transition costs” but promising long-term benefits, economists warned of the likely increase in consumer prices.

The political ramifications of these rising costs, particularly with the significantly higher tariff on Chinese goods, are a concern, potentially impacting public opinion and the Republican Party’s prospects in upcoming elections.