145% Tariff Imposed on China – 90-Day Suspension of Tariffs for European Union – President Donald Trump

145% Tariff Imposed on China – 90-Day Suspension of Tariffs for European Union – President Donald Trump

Washington, April 11: The United States has already received "significant" trade deal proposals from nearly 20 countries, with two deals nearing finalization, according to Kevin Hassett, Director of the National Economic Council at the White House.

However, there is still no resolution in sight for the ongoing trade conflict with China. The tariff rate on Chinese goods has now reached 145%, which the White House formally confirmed on Thursday. This rate is the result of adding 125% to the previously imposed 20% tariff, which was announced on Wednesday.

Hassett told CNBC on Thursday that the legal aspects of two trade deals are being worked on by lawyers from both countries, and for most countries, the 10% baseline tariff rate will remain in place. “The President will only be prepared to reduce this 10% rate if there is an 'extraordinary deal,'" said Hassett.

Meanwhile, on Wednesday, President Trump announced that for countries that have not taken retaliatory measures against U.S. tariffs, the tariffs will be suspended for the next 90 days. This announcement caused a surge in the U.S. stock market on Wednesday, but there was a significant drop again on Thursday morning.

The European Union has also decided to suspend its retaliatory measures for 90 days. European Commission President Ursula von der Leyen said on social media, “We have taken note of President Trump’s announcement. We want to give the opportunity for talks.”

Tensions with China have escalated further. On Thursday, Beijing imposed an 84% tariff on U.S. goods, which is being seen as a retaliatory measure.

Analysts say, "We are seeing a picture of both escalating and de-escalating tensions simultaneously, which is confusing the markets." Trump said, “China wants to make a deal, but it doesn’t know how to do it.”