US President Donald Trump is suspending most of the tariffs he calls "reciprocal" for three months, during which time they will be lowered to 10 percent. However, he is making an exception for imports from China.
Trump explained his moves to reporters at Washington on Wednesday. He said: "I thought that people were jumping a little bit out of line. They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid." He added: "They all want to make a deal. Somebody had to do what we did. And I did a 90-day pause for the people that didn't retaliate."
Trump posted on social media that he is taking the step because more than 75 countries have indicated a willingness to negotiate on trade. However, he is reacting to retaliation from China by increasing additional tariffs to 125 percent, effective immediately.
This comes after China said it will raise additional levies on US imports to 84 percent. That was in response to Trump's new round of global tariffs that kicked in earlier Wednesday.
Some people in New York say they are the ones who will pay the price.
One woman said: "I think what I'm wearing, most of it is made in China, I think most of, like, my automobile, I'm sure many products, you know, electronics, but not just that. I think much is made in China."
Another man said, "It only costs people more money everywhere in the world."
China's commerce ministry has filed a complaint with the World Trade Organization. It says the tariffs "seriously violate" WTO rules. It previously called the levies "a mistake on top of a mistake" and said "China will fight to the end."
The dispute has prompted mixed reactions from people in Beijing.
A man in his 60s said, "If the world's largest economy tries to suppress the second biggest economy, it will pay a big price."
Another man in his 50s said: "We should look at the situation carefully. It's hard to draw a conclusion right now, but I think our leaders have ideas, so I believe in their policies."
The commerce ministry announced bans on exports of goods that could have military applications to 12 American companies. It is also barring trade with six US firms engaged in military development.
Other nations and blocs have retaliated as well. The European Union will impose tariffs of up to 25 percent on some US imports, including motorcycles and farm goods, starting in mid-April.