U.S. President Donald Trump on Wednesday abruptly paused part of his tariff assault on global trading partners, dialing back duty rates on goods from many countries for 90 days to allow room to negotiate lower trade barriers, even as he hiked new tariffs on Chinese goods to 125%.
The move, following a week of market turmoil that has wiped out trillions of dollars in stock values, was the latest course reversal in Trump's hastily rolled out tariff agenda, sowing confusion about its objectives.
Here are key details of Trump's latest move:
'RECIPROCAL' TARIFFS PAUSED
The net effect of Trump's move is that many goods from most countries will be subject to a 10% U.S. import tariff for the next 90 days.
Trump's higher reciprocal tariffs imposed on Wednesday for 57 trading partners are paused for 90 days. These partners, which include the European Union, Japan, South Korea and, will instead revert to a 10% duty rate.
"Baseline" 10% tariff rates that took effect on April 5 for most other countries, including Brazil, Australia, Britain and Colombia, will remain in place for the 90-day period.
CHINA TARIFF RAISED TO 125%
After several tit-for-tat tariff escalations including China's 84% tariff on U.S. goods announced in Beijing on Wednesday, Trump hit back again with higher duties, raising the total new duties imposed since he took office in January to 125%. These are in addition to tariffs he had already imposed on many Chinese goods during his first term.
NO CHANGE FOR CANADA, MEXICO
Trump's tariff announcement last week spared Canada and Mexico, but only because their goods are still subject to 25% fentanyl-related tariffs if they do not comply with the U.S.-Mexico-Canada trade agreement's rules of origin.
These duties remain in place for the moment, with an indefinite exemption for USMCA-compliant goods.
AUTOS, METALS TARIFFS REMAIN
Trump's pause does not apply to the 25% tariffs that he levied on steel and aluminum in March and on autos that started on April 3. The 25% tariff on auto parts does not come into effect until May 3.
SECTORAL CARVE-OUTS STAY
Trump's initial order exempted copper, lumber, semiconductors, pharmaceuticals and critical minerals from broad global tariffs. But these sectors are expected to be the subject of future trade investigations that are expected to lead to separate tariffs, in much the same manner as autos.
Separately, Trump's order exempted oil, gas and other energy products from the tariffs.
