The trade war between the USA and China is intensifying. According to the recent statement from the White House, the customs duties imposed on China have reached 145%. It was noted that the 125% tax announced by Trump yesterday would be added to the previous 20% tax. Trump, in his global trade war, took a partial step back and deferred taxes against countries that did not retaliate for 90 days.

US President Donald Trump initially announced his decision on social media yesterday. He shared that the tax rate imposed on China would be increased from 104% to 125%. The reason given was China’s implementation of an 84% customs tax as retaliation against the USA.

TO BE APPLIED AS 145% White House has released a new statement regarding the customs duties imposed on China. The White House emphasized that the 125% customs tax declared by President Donald Trump yesterday did not include the existing 20% customs tax. The White House stated that the total customs tax imposed on China, including the existing 20% customs tax, was 145%.

90-DAY POSTPONEMENT FOR 75 COUNTRIES Trump also declared that they have suspended the new tax decision against approximately 75 countries that did not retaliate for 90 days. He said that this decision went into effect immediately and approved the imposition of a 10% customs tax during this period. Speaking at the White House shortly after the decision was made, Trump said that China, amongst others, wants to make a deal again. Trump stated, “There is tremendous interest from other countries, including China, in making a deal. They just don’t know how to do it. President Xi is a proud man.” Trump also mentioned countries that did not retaliate. He claimed that the new tax decision frightened these countries and stated, “There will be a 90-day break for those who do not retaliate because I said if they retaliate, we will double the taxes. I did the same to China because they retaliated. We will see how it ends. Our country will have something beyond anyone’s imagination in a year or even sooner.” US Treasury Secretary Scott Bessent also commented on the decision. He stated that countries that did not increase taxes for retaliation were rewarded. Bessent announced that Mexico and Canada were included in the basic 10% tax decision. However, the White House declared that these two countries would not benefit from the 90-day suspension and would continue to pay a 25% customs tax for non-US trade. Following the decisions made, the downward trend in the US stock markets reversed.