Trump imposes 145% tariff on China goods 

U.S. stocks tumbled on Thursday as investors assessed the worsening trade war with China, and President Trump clarified that he had raised tariffs on Chinese goods by a total of 145 percent since taking office.

On Wednesday, the president said he was increasing the import tax on China to 125 percent, even as he postponed similar punishing levies on most other countries for three months. He also left in place new tariffs on automobiles, steel and aluminum.

But on Thursday the White House put out a statement making it clear the 125 percent rise was in addition to a 20 percent tariff Mr. Trump had already imposed on China for its role in supplying fentanyl and its precursors in the United States.

While tensions between Beijing and Washington showed no signs of easing, the European Union responded to Mr. Trump’s decision to put off implementing a hefty import tax on its goods by announcing it would also delay its retaliatory tariffs on U.S. imports for 90 days. 

After Mr. Trump announced the tariff pause, the S&P 500 posted its biggest daily gain since 2008. By midday Thursday, the index has dropped around 4 percent, a decline that deepened in the hour after the White House clarified the tariff on China was steeper than initially expected.

The three-month delay on most country-specific tariffs, which Mr. Trump’s says are aimed at reversing bilateral trade deficits, did not temper the concerns of many economists who cautioned that the full repercussions from the trade war between Washington and Beijing would not be felt for weeks.

A report released on Thursday showed that U.S. inflation eased more than expected in March, providing what economists say is likely to be only a temporary reprieve before Mr. Trump’s tariffs are expected to reignite price pressures.

Source: Agencies