Within 24 hours, US President Donald Trump raised the tariff on goods coming from China to 145 per cent.
This is a day after President Donald Trump said he was hiking the levy to 125%. The White House said that was on top of a 20% tariff.
Before the announcement, China said it would “fight to the end” if no compromise is reached.
On Wednesday, Trump abruptly backed down and announced a 90-day pause for all countries except China, with a universal 10% tariff.
In response, the European Union said Thursday it would hold back on retaliation measures announced yesterday in response to US tariffs targeting European steel and aluminium.
During a cabinet meeting at the White House, Trump said there would be a “transition cost” due to his tariff policy.
“There will be a transition cost and problems,” Trump said. “But in the end, it’s going to be beautiful.”
Although Trump has suspended elevated levies on many countries, the president has still imposed a 10% baseline tariff rate on most US trading partners. Trump has also imposed a 145% rate on Chinese goods amid a trade war between the world’s two biggest economies.
Although Trump believes tariffs will bring jobs back to the United States from foreign countries, many economists say the tariffs will make the costs of everyday goods more expensive for US consumers.
The Trump administration contends that the tariffs are a negotiating tool. White House National Economic Council Director Kevin Hassett tells US broadcaster Fox News that the administration has “offers on the table from more than 15 countries.”
However, even a 10% baseline tariff could make everyday life more expensive for consumers as the White House negotiates deals. If costs rise further, it could sour the public’s view of the Trump administration and impact his Republican Party during next year’s midterm congressional election, it was gathered.
