Countries across the globe will have 90 days to negotiate a trade deal with the U.S., after U.S. President Donald Trump announced a pause in his tariff policy. It will provide reprieve for all countries impacted by Trump's higher trade taxes except China, which now faces a 125% tariff from the U.S.
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00:00Stocks on Wall Street surge as Donald
00:04Trump suddenly reversed what he called
00:06reciprocal tariffs against countries
00:08across the globe. The US president had
00:12last week imposed higher taxes on dozens
00:15of America's trade partners, bringing
00:17the total rate for some countries to
00:19over 50 percent. But after a week of
00:21turbulence in the exchange and fears of
00:23a recession, Trump announced a 90-day
00:26break to allow room for negotiations.
00:28I did a 90-day pause for the people that
00:31didn't retaliate because I told them if you
00:33retaliate we're going to double it. All
00:36countries will now be subject to the same
00:37baseline 10 percent tariff rate except
00:40China. Trump has zeroed in on the world's
00:44second largest economy, hiking levies to
00:46125 percent, effective immediately. That's
00:50after Beijing fought back, introducing
00:53their own 84 percent retaliatory levies
00:55against Washington, accusing the US of
00:58bullying.
00:59China has filed a second complaint with the World Trade Organization, telling the international
01:12regulator that the tariffs threatened to destabilize global trade. The country has also attempted to make alliances with other countries, urging Australia to join forces. An offer, Canberra has declined. That's as global markets rebounded after China's
01:19pause tariffs, with Australian and Asian markets tracking gains.
01:26I think everybody's breathing a sigh of relief because it's been extremely chaotic for the last few days.
02:03I think it puts investors in a position where they can hopefully reset, regroup and probably rebalance.
02:12Trump's aides say the 90 day pause will allow world leaders time to bargain with the US. More than 70 countries are in contact with the Trump administration looking to secure a deal.
02:22This was driven by the president's strategy. He and I had a long talk on Sunday and this was his strategy all along. And 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. And we are willing to cooperate with our allies and with our trading partners who did not retaliate.
02:29Trump continues to insist China wants to make a deal with the US despite the country vowing to fight until the end.
02:37And that was his strategy all along. And that 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. And we are willing to cooperate with our allies and with our trading partners who did not retaliate.
02:52Trump continues to insist China wants to make a deal with the US despite the country vowing to fight until the end.
02:59And with unprecedented levies imposed against each other, the tit for tat measures will continue to have global impacts.
03:06Dolphine Chen and Rosie Greninger for Taiwan Plus.