"We are willing to hear you."
China announces 84% tariffs on US in big trade war escalation
China announced tariffs of up to 84 per cent on US goods in response to the Donald Trump administration's 104 per cent duties on Chinese imports.
"Do not retaliate, and you will be rewarded," Treasury Secretary Scott Bessent said.
The US is pushing a calculated move to "isolate" China while encouraging global cooperation.
In a sudden reversal just a day after imposing sweeping new tariffs, US President Donald Trump on Wednesday announced a 90-day pause on duties for more than 75 countries — while hitting China harder by raising levies to a staggering 125 per cent.
The move, which sent financial markets sharply higher after days of turmoil, is an about-face from Trump’s earlier stance. The President had repeatedly denied he was considering any form of halt. But the administration now says the rollback was part of a broader strategy all along.
"We are going to go down to a 10 per cent baseline tariff for them and China will be raised to 125 per cent due to their insistence on escalation," Treasury Secretary Bessent said.
The announcement capped a week of market volatility and global panic following Trump’s declaration of what he called 'Liberation Day' — the moment he imposed steep new tariffs on dozens of US trading partners.
But instead of sustained pressure across the board, the White House offered a reprieve — and a challenge. According to Bessent, it was a deliberate plan that Trump had shared with him days earlier.
"He and I had a long talk on Sunday, and this was his strategy all along," Bessent said. "You might even say that he goaded China into a bad position. They responded, they have shown themselves to the world to be the bad actors."
Markets responded swiftly and positively to the tariff pause, with global indexes rebounding after days of sharp declines. Analysts credited the selective easing and clarity on trade strategy for calming investor nerves.
Trump later said the changes to his tariffs policy "had to be done" because people were "getting yippy".
"I did a 90-day pause for the people that didn't retaliate because I told them 'if you retaliate, we're going to double it' - and that's what I did with China," he said, adding that he thought, "It's all going to work out amazing."
He also said he thought Chinese President Xi Jinping would ultimately be open to negotiations. "I think he’s going to want to get to a deal," Trump said.
Bessent praised Trump’s tough approach, arguing that the dramatic tariff escalation pushed more than 75 nations to the negotiating table. "Every country in the world wants to come and negotiate," he said. "We are willing to hear you."
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