President Donald Trump declared a sweeping 90‑day pause on the reciprocal tariffs that had recently taken effect, with the sole exception of those imposed on China. In a dramatic shift from his previous hardline trade stance, Trump announced that tariffs on all countries other than China would revert to a universal rate of 10%, while tariffs on Chinese goods will be raised further from 104% to 125%.
Speaking on his social media platform, Trump stated, “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.” He added that the pause reflected a strategic recalibration amid ongoing trade tensions and global economic uncertainty. Trump also hinted that more favorable negotiations might be possible if other countries did not retaliate further, emphasizing that, “Nothing’s over yet, but we have a tremendous amount of spirit from other countries, including China.”
The announcement had an immediate and dramatic impact on Wall Street. The Dow Jones surged nearly 3,000 points, the S&P 500 jumped 9.5%, and the Nasdaq advanced 12.2% marks that represented the best trading day on the major US indexes in years. Markets welcomed the pause, even as the existing universal 10% tariff on imports remained in place for other nations.
Within his remarks to reporters, Trump noted that the policy decision was partly influenced by public reaction humorously alluding to people “getting a little yippy yappy” and underscored the need for flexibility in trade policy. Treasury Secretary Scott Bessent remarked that the move had been “baked into Trump’s tariff strategy” all along, adding that the president’s willingness to pause tariffs showed his commitment to reaching new trade deals.
While the pause gives breathing room for negotiations, it does not eliminate a baseline of significant tariffs: the 10% rate on many imports persists, along with additional levies on steel, aluminum, autos, and other sectors. The US Trade Representative and Commerce Secretary indicated that discussions with trading partners, including meetings with representatives from Vietnam, would continue during the pause period.
The higher tariffs on Chinese imports come after Beijing imposed retaliatory measures, with new tariffs of 84% on US goods scheduled to go into effect. Analysts warned that Trump's aggressive tariff policy, combined with the paused reciprocal tariffs, might only delay rather than prevent a deepening global trade dispute and potential recession.
