Trump hits 90-day pause on ‘reciprocal’ tariffs for most nations, but slaps China with 125% duty

Under growing pressure from a global market in freefall, President Donald Trump on Wednesday abruptly paused most of his sweeping tariff hikes, granting a 90-day reprieve to 57 trading partners. However, China was notably excluded — with the president escalating his economic offensive by raising tariffs on Chinese imports to a staggering 125 per cent.

By early afternoon, Trump took to Truth Social, saying that since more than 75 countries had reached out to the US for trade talks and hadn’t hit back in any major way, he decided to authorise a 90-day pause on tariffs. During this time, he added, a much lower 10 per cent ‘reciprocal tariff’ would apply — effective immediately.

The move followed a week of financial chaos that wiped trillions from global stock markets. It marks another sudden shift in Trump’s volatile trade policy, leaving allies and analysts uncertain about the administration’s long-term objectives.

‘Reciprocal’ tariffs on hold

Countries including the European Union, Japan, and South Korea will now see their tariff rates reduced to 10 per cent for the next 90 days, a pause in what the White House had previously branded “reciprocal tariffs”.

Meanwhile, the baseline 10 per cent duties already applied to nations such as Brazil, Australia, Britain, and Colombia will remain in place. However, Canada and Mexico continue to face tariffs of up to 25 per cent under a separate directive linked to efforts to curb fentanyl trafficking.

China tariffs raised to 125%

While backing off tariffs on most of the world, Trump took a sharply different stance with China. In response to Beijing’s announcement of an 84 per cent duty on US goods, the president increased tariffs on Chinese imports to 125 per cent — intensifying the trade confrontation between the world’s two largest economies.

“This was his strategy all along,” said Treasury Secretary Scott Bessent, a former hedge fund executive. He claimed the tariff pause was prompted by a surge in negotiation requests from allies, not by the steep selloffs seen in global markets. “The only certainty we can provide is that the US is going to negotiate in good faith, and we assume our allies will too,” he said, AP reported.

However, confusion followed as Commerce Secretary Howard Lutnick contradicted the president’s narrative, saying the decision to pause tariffs was “definitively” not tied to market instability, but rather to direct diplomatic outreach from trading partners.

Markets rebound, but uncertainty remains

Markets responded positively to the news. The S&P 500 surged 9.5 per cent, offering temporary relief after a punishing week. Still, investors remain cautious, as the administration prepares for a round of bespoke trade negotiations with individual countries.

Trump later told reporters that fears about falling stocks and rising interest rates had influenced his decision. “People were getting yippy, afraid,” he said. “The bond market is very tricky. I was watching it. But if you look at it now, it’s beautiful.”

He added that he had been considering a tariff pause for several days, but finalised the decision “fairly early this morning”.

When asked why the White House had previously denied any plans for negotiation, Trump shrugged off the inconsistency: “A lot of times, it’s not a negotiation until it is.”