WASHINGTON — President Donald Trump said he would pause higher reciprocal tariffs for 90 days on dozens of trade partners, while raising duties on China to 125%.
The president’s about-face comes roughly 13 hours after higher reciprocal duties on 56 nations and the European Union went into effect, a move that fueled market turmoil and stoked recession fears. The president came under massive pressure from business leaders and investors to reverse course.
“I have authorized a 90 day pause, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump posted on social media.
It wasn’t immediately clear which nations would receive tariff relief. Those who do would still be taxed at the 10% baseline rate that went into effect Saturday. Trump said that more than 75 countries had contacted his administration to negotiate on trade barriers and “have not, at my strong suggestion, retaliated in any way, shape, or form.”
Trump also said he was raising rates on China over its refusal to negotiate. The president had previously imposed a 104% charge on Chinese imports, which Beijing responded to with a 84% charge on American goods.
“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 said in a social media post Wednesday.
Treasury Secretary Scott Bessent on Wednesday couched the turnabout as a victory for Trump, telling reporters the president “created maximum negotiating leverage for himself” in talks with other nations. He said he would be speaking to officials from Vietnam, Japan, India and South Korea in the coming days.
Stocks surged after Trump’s announcement with the Dow Jones Industrial Average rising more than 5% for the day and the Nasdaq rising more than 7%. The S&P 500 Index was up about 1% for the day.
