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Trump’s Trade Policy Shift: A 90-Day Tariff Pause and New Measures Against China
On Wednesday, former President Donald Trump made headlines by announcing a significant change in U.S. trade policy through a post on Truth Social. He revealed a 90-day plan to “substantially” reduce reciprocal tariffs to 10 percent for all countries, with the notable exception of China.
In response to China’s recent retaliation—increasing tariffs on U.S. imports to 84 percent—Trump declared that tariffs on Chinese imports would rise dramatically to 125 percent, effective immediately. This escalation likely exacerbates tensions, as China had previously urged the Trump administration to revoke all tariffs on their goods, according to a report by NPR.
The Chinese finance ministry criticized the U.S. approach, labeling it as “a mistake on top of a mistake” and urging for a resolution of trade differences through respectful dialogue.
Tech companies, in particular, have found it challenging to navigate Trump’s impromptu announcements related to tariffs, as the markets often respond in real-time. The ambiguity surrounding Trump’s posts creates confusion, yet following clarifications from Treasury Secretary Scott Bessent, the stock market rebounded significantly after several days of decline, as reported by CNBC.
Despite the market’s temporary recovery, uncertainty looms over many tech firms. Ed Brzytwa, vice president of international trade at the Consumer Technology Association (CTA)—which represents the expansive $505 billion U.S. consumer technology sector—pointed out that the repercussions of the tariffs have already adversely affected his members, particularly small businesses and startups. “The damage has been done,” Brzytwa emphasized.
Brzytwa further highlighted the unique vulnerability of smaller entities in light of the reciprocal tariffs and the associated volatility, stating, “There’s collateral damage to that.”
Gary Shapiro, CEO of the CTA, characterized the pause as “a victory for American consumers,” while also calling for the complete withdrawal of tariffs. “While this is great news, we are hearing directly from our members that the ongoing additional 10 percent universal baseline tariffs and this continued uncertainty are already hurting American small businesses,” Shapiro noted. He urged Trump to engage in constructive dealmaking, emphasizing that now is the moment for the U.S. to strengthen relationships with allies and emerge as a dependable trading partner, thereby fostering growth in both the American and global economies.
Source
arstechnica.com