Major relief as Trump backs down on tariffs
US President Donald Trump last night lowered tariffs on goods from dozens of countries to 10% for 90 days.
It has been reported that the temporary reprieve from global tariffs sparked a historic surge on Wall Street, but there is still major uncertainty.
Trump earlier announced on Truth Social that the tariff rate on Chinese goods would be raised to an unprecedented 125%, effective immediately. He justified the drastic increase, claiming it was in response to the ‘lack of respect China has shown the World’s Markets.’
Trump’s post also revealed a 90-day tariff pause for more than 75 countries – including SA – in an effort to encourage trade partnerships with nations that had previously negotiated with the US.
The Star reports that this escalation in the ongoing trade war with China marks a new chapter in global economic tensions, with markets bracing for the potential fallout as both nations prepare for further economic battles.
Trump said more than 75 countries had asked for negotiations over the tariffs.
He therefore said he ‘authorised a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,’ Trump said on Truth Social.
Only a flat rate of 10% tariffs on all countries that took effect on Saturday will remain in place.
This marked a stunning reverse from often punishing levies that hit even many of the closest US allies.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
