US President Donald Trump on Wednesday a 90-day pause on the rollout of reciprocal tariffs on most countries, with the exception of China. US stock markets reacted positively to the news, showing remarkable gains. The S&P 500 index climbed 5.7% after recovering from a 0.7% decline. The Dow Jones Industrial Average rose by 2,000 points, a 5% increase, whilst the Nasdaq composite advanced 6.8%.
Market participants have been urging Trump to reduce tariffs, as economists warn that these measures could trigger a worldwide economic downturn and push prices higher. The move appeared to focus the extensive trade dispute, which had previously involved the United States and numerous global partners, into a bilateral conflict between the United States and China.
Trump said that he’s backing down on most nations’ tariffs for 90 days amid market meltdown, but he’s raising China tariffs. Reciprocal tariffs on China were raised to 125% by Trump, up 21% from the 104% announced yesterday.
“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,” Trump wrote on Truth Social.
Trump indicated over 75 countries had requested tariff discussions. Trump announced a temporary pause on tariff increases, citing the lack of retaliation from many nations. He stated, “I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!”
US Treasury Secretary said that President Trump will keep a 10% baseline tariffs on most countries while escalating action against China.
Earlier Trump said that world leaders are eagerly seeking trade agreements with the United States. “I am telling you, these countries are calling us up, kissing my ass, Trump said. He added: “They are dying to make a deal. ‘Please, please sir, make a deal. I’ll do anything sir’.”
