Trump Announces 90-Day Tariff Pause - China Excluded

In a surprising and bold shift in U.S. trade policy, President Donald Trump announced a 90-day pause on the full implementation of newly imposed reciprocal tariffs—with the exception of those targeting China, which are now increased to a staggering 125%.

“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 declared in a Truth Social post on Wednesday.

The announcement immediately sent global stock markets soaring, with the S&P 500 surging 7%, marking its largest single-day gain in five years.

According to President Trump, the pause includes a substantially lowered 10% reciprocal tariff rate during the negotiation period. This significant softening in U.S. trade posture aims to encourage international dialogue.

“More than 75 countries have already reached out to negotiate solutions,” Trump stated, attributing his tariff pause to the global response.

Donald J. Trump (@realDonaldTrump)

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. 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!

Truth Social

Treasury Secretary Scott Bessent praised Trump’s determination, saying:

“He had great courage to stay the course until this moment.”

He added that the U.S. is extending an open hand to global partners:

“Do not retaliate and you will be rewarded.”

Commerce Secretary Howard Lutnick, who was present during the drafting of the announcement, emphasized its importance:

“This is one of the most extraordinary Truth posts of his presidency.”

While most countries now benefit from the reduced 10% tariff and the window for negotiation, China faces harsher measures. This move follows Beijing’s decision to impose new retaliatory tariffs on the U.S., set to take effect Thursday.

“The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction,” Lutnick concluded in a post on X.