Trump announces 90-day tariff pause, China faces 125% tariff increase
U.S. President Donald Trump pumps his fist as he arrives to delivers remarks on reciprocal tariffs during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, U.S. on April 2, 2025. (AFP Photo)
United States President Donald Trump announced Wednesday a 90-day pause on his sweeping tariffs, setting a 10% baseline for all countries, except China, which will face even steeper penalties.
“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 stated that over 75 countries had requested negotiations on the tariffs. In response, he said he had “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
US stock surge with pause announcement
Meanwhile, Wall Street stocks surged suddenly Wednesday after Trump announced a 90-day tariff pause on all countries except China.
Shortly after Trump revealed his latest pivot on his Truth Social platform, the S&P 500 jumped 6% to 5,281.44, reversing a brutal run of losses since Trump’s “Liberation Day” tariff announcement a week ago. Additinally, Nasdaq rose more than 7.8% and the Dow gained over 5% in mid-day trading.
White House spokesperson Karoline Leavitt later explained that the 10% tariff would be “universal” and designed to allow nations time to negotiate with the U.S.
Treasury Secretary Scott Bessent said the solutions to the trade disputes would be “bespoke,” tailored to each country, adding that the U.S. has been “overwhelmed by the response from mostly our allies” negotiating in good faith. “We are expecting them to come with their best deal,” he said. “And China kept escalating and escalating, and now they have 125% tariffs.”
