‘Yippy’ and ‘Afraid’: What to know as Trump reverses course on tariffs
WASHINGTON – A week after announcing global “Liberation Day” tariffs and sending the world’s financial markets into a nosedive, President Donald Trump said Wednesday he’s pausing the reciprocal tariffs for 90 days for most countries with one notable exception.
Trump raised tariffs on China, one of America’s biggest trading partners and economic rivals, from 104% to 125%, saying the country would realize that “ripping off the U.S.A. … is no longer sustainable or acceptable.”
The moves marked a dramatic reversal after Trump vigorously defended the steep tariffs amid the economic and market upheaval.
Following the abrupt shift Wednesday, stocks skyrocketed and bond yield jumped.
Here’s what to know about Trump’s sudden pause:
Which tariffs were paused and which remain?
While hiking China’s tariff rate to a massive 125%, Trump paused what his administration has called “reciprocal tariffs” on imports from more than 70 other countries worldwide. These tariffs went into effect Wednesday, only hours before Trump halted them.
Trump said he is significantly lowering these tariffs to a 10% flat rate, matching the 10% baseline universal tariff that kicked in Saturday.
Previously imposed 25% tariffs on certain goods from Mexico and Canada, which weren’t part of last week’s reciprocal tariff rollout, will remain in place.
The pause also does not extend to industry-specific tariffs that Trump imposed on steel, aluminum and auto imports – nor would it apply to tariffs on pharmaceuticals, which Trump said are forthcoming.
Why did Trump back down?
Trump and his top economic advisers said they were swayed to pause the tariffs after more than 75 countries approached the U.S. seeking trade deals in the days after he unveiled them.
Trump, speaking to reporters, added that the changes were also prompted by people becoming concerned about turbulence in the markets. Economists and business leaders have increasingly warned that Trump’s aggressive tariffs could trigger a potential recession.
“I thought that people were jumping a little bit out of line,” Trump said. “They were getting yippy, you know. They were getting a little bit yippy, a little bit afraid.”
USA TODAY
