Washington DC [US] – In a bold move that has reignited global trade tensions, President Donald Trump has defended his decision to raise tariffs on Chinese goods to 125%, declaring that the U.S. “had to stop” an unfair trade relationship that he claims cost the country USD 1 trillion last year.
Speaking during an event at the White House to honour racing legend Roger Penske and his championship NASCAR, INDY, and IMSA teams, Trump said, “Somebody had to do it. It had to stop because it’s not sustainable.”
Fixing the Trade Imbalance
Trump claimed that for years, China benefited enormously from trade with the U.S., while America got the short end of the stick.
“Last year, China made $1 trillion off the United States. Now, I’ve reversed it,” he said, touting his aggressive tariff strategy as the turning point.
The hike comes after a series of tit-for-tat moves between the two nations. Recently, China retaliated by raising tariffs on U.S. goods from 34% to 84%, prompting Trump to respond with a 50% increase, pushing the total tariff to 125%.
90-Day Pause for Friendly Nations
Trump also announced a 90-day pause on reciprocal tariffs for over 75 countries that had reached out to negotiate in good faith.
“I told them if they retaliate, we’re going to double it. China retaliated, so I did,” he explained.
He expressed confidence in the U.S. position, saying, “It will work out amazingly… By the end of the year, or even sooner, we’ll have a deal nobody thought was possible.”
Tough Talk on the European Union
Trump didn’t just stop at China. He also took aim at the European Union, accusing the bloc of being unfair to American trade interests.
“A deal will be made with everyone, but this time they will be fair deals,” he stressed. “People took advantage of us and ripped us off for decades.”
A Lighter Moment Amid Tensions
Despite the serious economic discussions, the President struck a lighter tone during the celebration of Roger Penske’s racing legacy.
He joked about his ride in “The Beast” at Daytona 500, describing the crowd going wild and humorously refused to ride an IndyCar, saying, “I wouldn’t ride in that thing if you paid me.”
Global Trade on Edge
With China and the U.S. ramping up tariffs and tensions, the global trade community is watching closely. Trump’s unapologetic stance signals more aggressive negotiations in the months ahead as the U.S. pushes for what it calls “fair and reciprocal” trade.