Trump Pauses Targeted Reciprocal Tariffs on Most Nations for 90 Days

President Donald Trump announced Wednesday he is pausing targeted, reciprocal tariffs on nearly all countries for 90 days, except for an increased 145% tariff on China. A 10% baseline tariff on nearly all countries remains in effect.

After announcing a baseline 10% tariff on all imports, excluding goods covered by the United States-Mexico-Canada Agreement (USMCA) on April 2, President Trump announced even higher, targeted reciprocal tariffs on many countries would go into effect on April 9. It was paused that day.

Since the announcement of targeted tariffs, China responded with its own tariff, which has increased several times in the last week. As of April 10, the U.S. tariff on Chinese imports is 145%, and China’s tariff on American imports is now 125%. These tariffs are now in effect.

A 25% tariff on all foreign-made automobiles is also in effect.

He outlined the targeted reciprocal tariffs during an event at the White House on April 2, describing them as a “discount” because they are less than what each country imposes on U.S. exporters. President Trump also outlined that the United States has had a lower most-favor-national basis as a member of the World Trade Organization and has paid higher tariffs from trade partners like Brazil, India, the European Union, and others.

“For decades starting in 1934, U.S. trade policy has been organized around the principle of reciprocity…However, despite a commitment to the principle of reciprocity, the trading relationship between the United States and its trading partners has become highly unbalanced, particularly in recent years,” the executive order states.

See a full list of targeted reciprocal tariffs by country here.

Reacting to the announcement, Kentucky Chamber President and CEO Ashli Watts said:

“Kentucky businesses rely on strong trade relationships, and these new tariffs will create unnecessary disruptions that hurt our economy. As the state’s largest business association, the Chamber strongly opposes the implementation of tariffs. Tariffs will not solve our trade deficit and will send prices soaring, costing the average Kentuckian household up to $1,200. The bottom line is that tariffs are a tax paid by American families that will stifle growth. As we have seen time and time again, trade works, and tariffs don’t. As a rural manufacturing state, we are concerned about what these tariffs mean for our auto manufacturers, distillers, and farmers. As this issue progresses, the Chamber will continue working closely with our members and Congressional delegation to assess the impact and advocate for policies that protect our economy.”

The Tax Foundation, a nonpartisan group, estimates a 10% universal tariff would cost American households $1,253 a year. During President Trump’s first administration, The New York Federal Reserve Bank found that “the tariffs that the United States imposed in 2018 have had complete passthrough into domestic prices of imports.”

The U.S. Chamber of Commerce notes that people see tariffs as price hikes; a survey found that 61% of Americans disapprove of tariffs.

Stay tuned to The Bottom Line for more updates on federal policies and tariffs.