President Trump Pauses Global Tariffs for 90 Days, Imposes 125% Duty on China
In a major policy announcement on Wednesday, U.S. President Donald Trump revealed a 90-day pause on tariffs for more than 75 trading partner nations, while simultaneously escalating trade tensions with China by imposing a 125% import tariff, effective immediately.
The President made the announcement in a statement posted on X (formerly Twitter) around 1:30 p.m. ET, outlining the reasoning behind his dual-action move.
“Based on the fact that more than 75 Countries have called Representatives of the United States… to negotiate a solution to the subjects being discussed relative to Trade… and that these Countries have not… retaliated… I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
China Faces the Full Force of U.S. Tariffs
While global allies have been offered a reprieve, China is now subject to the harshest trade penalty yet under Trump's administration. The new 125% tariff reflects growing frustration from the U.S. regarding Beijing’s trade practices.
“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. “At some point… China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”
Market Turbulence and Economic Impact
The financial markets initially reacted with concern, fearing a deeper trade war. However, once Trump clarified the tariff pause for all other countries, investor sentiment improved significantly:
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Dow Jones Industrial Average surged over 2,200 points.
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S&P 500 jumped by nearly 6%.
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Nasdaq 100 rallied more than 7%, marking the biggest single-day gain in years.
Global and Political Reactions
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China responded with an 84% tariff on American goods, threatening to intensify the ongoing economic battle.
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The European Union hinted at retaliatory tariffs on $22 billion worth of U.S. exports.
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Republican and Democratic lawmakers voiced concern about prolonged tariff strategies and hinted at legislation requiring congressional oversight for future tariff implementations.
Looking Ahead
The 90-day tariff suspension offers a potential window for diplomatic progress with non-China trading partners. However, the dramatic 125% tariff on China highlights a clear signal: the U.S. under President Trump is determined to reshape global trade—even if it means pushing long-standing rivals into a showdown.
With this bold move, President Trump reinforces his stance on economic nationalism while keeping the pressure dialed up on China. The next few weeks will be critical in observing how international markets and governments respond to this high-stakes tariff strategy.
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