Listen to this article

UPDATED at 1:36 p.m. EST April 9, 2025: About 13 hours after his steep reciprocal tariffs went into effect, President Donald Trump posted on social media platform Truth Social that he “authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”

He also said, “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.”

The original story, below, was published at 7:34 a.m. EST April 9.

At midnight, steep reciprocal taxes recently introduced by President Donald Trump officially took effect.

The latest round of tariffs includes an 84% levy placed on China. That’s in addition to a previous 20% tariff, for a total rate of 104%, as the standoff between the two countries intensifies.

A baseline rate of 10% previously went into effect on U.S. trading partners. These latest reciprocal rates exceed that threshold. A full list is available here.

Despite major market drops over the last few sessions, Trump and his administration continued to dig in and defend the move. The White House insists that countries are eager to negotiate.

“This is the largest transaction in the history of our country,” the president said during a Tuesday speech at a National Republican Congressional Committee dinner. “I’m telling you – these countries are calling us up, kissing my ass. They are. They are dying to make a deal.”

In response to the reciprocal tariffs, China has dug in, vowing to fight to the end. And Wednesday morning, China announced its own 84% reciprocal tariff on U.S. goods – plunging futures once again.

New prescription

Not part of the round announced on “Liberation Day,” or previous tariff rollouts, the president also hinted at upcoming tariffs on pharmaceuticals.

“We’re going to tariff our pharmaceuticals. And once we do that, they’re going to come rushing back into our country – because we’re the big market,” he said. “The advantage we have over everybody is that we’re the big market. So, we are going to be announcing very shortly a major tariff on pharmaceuticals. And when they hear that, they will leave China. They will leave other places. Because they have to sell – most of their product is sold here.”

Markets appeared to rally much of Tuesday. However, they turned late in the day as these latest developments played out – especially the ratcheting up tensions between the U.S. and China.

And with the reciprocal tariffs, in fact, going into effect before any relief, pause or deals were announced, the overseas markets and U.S. futures were mostly red as investors, markets and businesses brace for what’s next — and how all of this will ultimately play out.

This situation is rapidly evolving. Please stay with NJBIZ for the very latest developments.