There is an ongoing intense trade war between the United States and China. According to a recent announcement from the White House, China will be subject to a 145 percent customs duty. It was mentioned that this newly proposed duty by Trump, which originally stood at 125 percent and is an increment from the prior 20 percent, will go into effect. Trump, in his global trade war initiative, decided to temporarily delay taxes against countries that do not retaliate for a period of 90 days.

President Donald Trump first disclosed his decision through his social media account yesterday. He shared that the previously existing 104 percent tax rate on China had been increased to 125 percent. The reason cited was China imposing an 84 percent customs duty as retaliation against the U.S.

TO BE APPLIED AT 145 PERCENT White House released a recent statement regarding the customs duty rate imposed on China. It was clarified that the 125 percent customs duty declared by President Donald Trump against China yesterday did not incorporate the existing 20 percent customs duty. The White House disclosed that the total customs duty rate against China, including the existing 20 percent customs duty, amounts to 145 percent.

90-DAY DEFERRAL FOR 75 COUNTRIES Trump also mentioned that they are halting the implementation of the new tax decision for about 75 countries that do not retaliate for the next 90 days. He confirmed that this decision took effect immediately and approved the application of a 10 percent customs duty rate during this period. Speaking shortly after the decision was made at the White House, Trump mentioned that China is willing to make a deal once again. Trump stated, “There is massive desire from other countries, including China, to make a deal. They just don’t know how to do that. President Xi is a proud man.” Trump also addressed the non-retaliatory countries, claiming that the new tax decision has left these countries fearful, “A temporary break of 90 days will be applied to those who do not retaliate because I said if you retaliate, we will double the taxes. I did the same to China because they retaliated. We will see how this unfolds. Our country, within a year, or even sooner, will have something that no one could dream of.” U.S. Treasury Secretary Scott Bessent also made a statement regarding the decision, stating that countries not increasing taxes in retaliation are being rewarded. Bessent announced that Mexico and Canada would also be included in the basic 10 percent tax decision. However, the White House declared that these two countries will not benefit from the 90-day pause and will continue to pay a 25 percent customs duty in foreign trade. Following these decisions, the downward trend in U.S. stock markets reversed.