U.S. Raises Tariffs on China to 125%, Temporarily Eases Measures for Other Nations

In a move set to redefine current trade dynamics, President Donald Trump announced that the United States will increase import tariffs on Chinese goods to 125%, effective immediately. Meanwhile, a temporary 90-day pause will be applied to most reciprocal tariffs for other nations, which will instead face a baseline 10% duty during the suspension period.

Treasury Secretary Scott Bessent clarified during a White House press briefing that sector-specific tariffs will remain intact despite the broader tariff pause. However, the treatment of Canada and Mexico under these adjustments remains uncertain. Although they were mentioned as part of the global update, previous executive actions had already set a separate 25% duty for non-USMCA-compliant imports.

President Trump cited increasing interest in trade negotiations from over 75 countries, including Japan, Vietnam, South Korea, and India, as a driving factor behind the temporary easing. These nations are reportedly at the forefront of discussions aimed at establishing new trade terms.

In contrast, the U.S.-China trade conflict continues to escalate. Since February, multiple tariff hikes have been levied against Chinese goods, including a recent increase of 50%. With earlier tariffs stacking, the cumulative U.S. rate on Chinese imports had already reached 104% before the latest hike. In response, China has imposed its own retaliatory tariff of 84%, set to take effect Thursday.

The growing economic friction between the world’s two largest economies is causing alarm among global trade experts. World Trade Organization Director-General Ngozi Okonjo-Iweala warned that this back-and-forth could severely impact global economic stability. She noted that bilateral trade between the U.S. and China accounts for approximately 3% of global trade, and disruptions could result in up to an 80% drop in goods exchange between the two countries. The WTO projects this could trigger a 7% contraction in global real GDP.

Worldcraft Logistics Commentary

From a logistics and international transportation perspective, these evolving tariff changes present both risks and opportunities. While the temporary suspension of reciprocal tariffs for most countries may ease short-term operational costs for some importers and exporters, the heightened tension with China raises concerns over supply chain continuity, increased shipping costs, and rerouting needs.

Businesses heavily reliant on China-based manufacturing or raw materials may face significant margin pressures and will need to assess alternative sourcing strategies, optimize warehousing, and seek diversified trade lanes to reduce exposure.

At Worldcraft Logistics, we emphasize the importance of proactive logistics planning during times of trade volatility. Tailored transportation and distribution solutions can help companies navigate uncertainty while maintaining service levels and cost efficiency.

*This article has been edited to suit the readership of Worldcraft Logistics. It is based on publicly available information and does not represent the views or endorsements of any individual or organization mentioned.