That 125% tariff rate refers to this most recent round of tariffs rather than the tariff rate on Chinese goods overall, the White House confirmed Thursday, meaning that number does not include other tariffs that have previously been levied on China—most notably a 20% tariff that Trump levied because of China’s role in the fentanyl crisis.

While Trump has paused his whopping 46 percent tariff on Vietnam, economists say the export-reliant country still faces painful decisions.

White House officials clarified on Thursday that the 125 percent tariff the president announced on Wednesday was in addition to a 20 percent added to the country since President Trump returned to office.

The announcement of Donald Trump's so-called "reciprocal tariffs" on 2 April - what he called "liberation day" - sent a shockwave through the global trading system and financial markets. And the President's 90-day pause on some of these tariffs on 9 April set off a relief rally in stock markets.

" The moves marked a dramatic reversal after Trump vigorously defended the steep tariffs amid the economic and market upheaval.Start the day smarter. Get all the news you need in your inbox each morning.