President Donald Trump announced a 90-day pause on tariffs for roughly 75 countries that did not issue retaliatory tariffs, and said that the U.S. raised the tariff charged to China to 125%, according to a Wednesday Truth Social post.
This comes after Trump implemented tariffs on several other nations on April 2, sending shockwaves across international markets. Markets immediately responded by surging following the president’s announcement. Trump said he will maintain a baseline of 10% tariff on countries for the next 90 days, besides China.
“Based on the lack of respect China has shown to the World’s Markets, I am hereby raising the tariff charge to China by the United States of America by 125%, effective immediately,” Trump wrote.
“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” he continued.
“Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency,” Commerce Secretary Howard Lutnick reacted to the news on X. “The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction.”
China and the United States have exchanged different tariff threats since Trump announced a national emergency on April 2 to impose a wave of reciprocal tariffs on about 60 countries in what he called “liberation day.”
The tariffs caused global upheaval in the markets, with several investors fleeing U.S. stocks in response. Initial indications point to a turnaround following this latest announcement: the S&P 500 list stocks surged seven percent, while NASDAQ grew by nine percent as of Wednesday afternoon, Reuters reported.
