Grains rally as Trump hikes China tariffs, pauses others
By Joel Penhorwood, Ohio Ag Net
Grain and livestock markets closed higher on Wednesday as major changes in tariff policy sparked a sharp midday rebound.
President Donald Trump announced he is pausing reciprocal tariffs on most countries for 90 days as negotiations take place, while immediately increasing Chinese tariffs to 125%, citing China’s “lack of respect” in trade matters.
Trump posted the following on social media:
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable. Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.