During this 90-day period, only a 10% tariff will remain in effect.
Trump Pauses Tariffs for 90 Days for Every Country, Except China, Latest News: In a major relief to investors and traders around the globe in this melting economy due to US tariffs, Donald Trump on Wednesday announced a 90 day pause on his continuous tariffs on all countries, excluding China. Beijing is slapped with an increased tariff of 125% from 104% declared previously.
“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump posted Wednesday on social media.
Wall Street saw a strong rally following the announcement. The Dow Jones Industrial Average soared by nearly 2,500 points, registering an eight-percent gain in a single session. The tech-focused Nasdaq surged 12.2 percent—its best performance in 24 years—while the S&P 500 advanced 6.0 percent, closing at 5,281.44 points.
According to President Trump, as many as 75 countries had reached out to him for negotiations and chose not to retaliate, which led him to implement the pause. During this 90-day period, only a 10% tariff will remain in effect.
On China’s retaliation, while announcing the sharp hike to 125%, Trump cited the "lack of respect that China has shown to the world's markets."
He wrote on Truth Social, "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. At some point, hopefully in the near future, China will realize that the days of ripping off the US and other countries, is no longer sustainable or acceptable."
"China wants to make a deal. They just don't know how quite to go about it...President Xi Jinping is a proud man. They don't know quite how to go about it, but they'll figure it out," he added.
However, speculations are rife that the outreach from countries may not be the only reason behind this sudden policy shift. According to reports, fellow Republicans and business leaders had been urging President Trump to ease the tariffs, warning of a potential major trade war that could lead to a global recession. Despite these concerns, Trump had remained firm — which is why Wednesday's announcement came as a surprise and a relief to many.
A CNN report suggests the main reason behind the decision was growing alarm within the U.S. Treasury Department, stemming from an accelerating selloff in the bond market. Treasury Secretary Scott Bessent is said to have personally raised the issue with the president.
Speaking to reporters after the announcement, Trump said, “The bond market is very tricky, I was watching it. The bond market right now is beautiful. But yeah, I saw last night where people were getting a little queasy… We didn’t have access to lawyers. We just wrote it up. We wrote it from our hearts, right? It was written from the heart, and I think it was well written too.”
“I thought that people were jumping a little bit out of line... They were getting yippie, you know, getting a little bit afraid. You have to be flexible,” he added.
On India’s position, Ministry of External Affairs spokesperson Randhir Jaiswal said on Wednesday, “India and the United States are very strong partners when it comes to trade, economic, investment, and commercial relations. We hope these ties will continue to deepen. As far as trade issues are concerned, we are in negotiations for a bilateral trade agreement, and we hope to conclude it expeditiously.”
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