Donald Trump has backpedaled on his aggressive tariff strategy, announcing a 90-day pause on most tariffs, effective immediately. The decision marks a sharp shift in his approach, coming amidst ongoing market turmoil and global trade concerns.
In a post on his Truth Social platform, Trump declared: “I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” However, Trump’s announcement comes with a significant exception: tariffs on Chinese goods will be raised sharply to 125%, effective immediately.
Trump explained this move by citing China’s “lack of respect” for global markets:
“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 U.S.A., and other Countries, is no longer sustainable or acceptable,” Trump wrote.
He also claimed that more than 75 countries had reached out to the U.S. to negotiate on trade issues. This, Trump said, influenced his decision to pause tariffs for most nations.
“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, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
“Thank you for your attention to this matter!” he concluded.
The announcement brought immediate relief to global markets, with the S&P 500 surging 5.6% and the Nasdaq jumping over 8%.
Trump’s decision to pause tariffs for most countries signals a shift in his trade policy, but his tough stance on China remains unchanged. It’s still unclear whether other nations will face tariffs above the newly set 10%.
