Trump pauses reciprocal tariffs for 90 days, increases China tariffs to 125%

President Trump made a significant announcement on Wednesday regarding a 90-day pause on most of his new tariffs, along with a reduction in the “reciprocal tariff” rate to 10%. This decision, as stated on Truth Social, immediately caused a surge in the U.S. stock market. However, in contrast to this positive news, the president also declared an increase in the tariff rate on goods imported from China to a staggering 125%.

In response to China’s lack of respect towards global markets, President Trump justified the tariff hike, emphasizing his administration’s firm stance on trade issues. Treasury Secretary Scott Bessent and White House press secretary Karoline Leavitt further clarified that the universal tariff rate for the next 90 days would stand at 10% for most countries, excluding China. This inclusive rate also applies to the European Union, with future negotiations post the 90-day period remaining uncertain.

Despite the tariff adjustments, previous rates on steel, aluminum, and auto imports remain unaffected, according to a White House official. The president’s strategic move aims to encourage negotiations with over 75 countries seeking solutions to trade barriers and tariffs. The decision to implement a 90-day pause and reduce the reciprocal tariff rate was influenced by these ongoing discussions and the absence of retaliatory measures against the United States.

During a press briefing at the White House, President Trump elaborated on his rationale for the pause, highlighting the need to maintain stability in markets amid global uncertainties. He emphasized the importance of leveraging the situation for the benefit of the United States, as evident in the strategic implementation of tariffs. The decision to issue a pause was driven by a desire to foster productive negotiations and uphold U.S. interests on the international stage.

As the administration navigates the complexities of trade negotiations, top officials like Treasury Secretary Bessent underscore the president’s hands-on approach and commitment to securing favorable deals for the country. Despite initial market volatility following the tariff announcements, the administration is confident in its strategy and the unfolding of events. With the reciprocal tariffs now in effect, the administration is optimistic about the potential for favorable outcomes in future trade discussions.

In a recent post on Truth Social, President Trump urged investors to seize the opportunity presented by the current market conditions, signaling a positive outlook on potential investment opportunities. The evolving landscape of trade negotiations and tariff policies underscores the administration’s dedication to prioritizing American interests and fostering mutually beneficial trade relationships on the global stage.