US President Donald Trump has announced a 90-day pause on tariffs for most countries, introducing a reduced 10% rate during this period. The move comes amid growing global pressure to ease trade tensions and revise tariff structures that had impacted both allies and competitors. However, Trump sharply increased tariffs on Chinese imports, raising them to 125% with immediate effect.
Trump made the announcement on Truth Social, citing China’s ongoing disregard for fair trade and global market rules. “Due to China’s lack of respect for the world’s markets, I am raising the tariff charged to China to 125%,” he stated. While easing the pressure on many nations, he emphasized a tougher stance against China.
More than 75 countries had reportedly requested negotiations on tariff reductions. In response, Trump said he had authorized a 90-day pause and introduced a lowered reciprocal tariff rate of 10% for most partners. The temporary reduction is expected to encourage diplomatic talks and ease trade-related uncertainty.
The financial markets reacted swiftly and positively. The Nasdaq Composite Index surged by 10.8%, closing at 16,917.49. The tech-heavy index led a broader market rally as investors welcomed the pause as a sign of possible trade stabilization. Other major indexes, including the Dow Jones and S&P 500, also posted strong gains.
Analysts suggest that the tariff pause could provide short-term relief for businesses and global supply chains. However, the sharp increase in tariffs on Chinese goods may escalate existing tensions between Washington and Beijing. The mixed approach—relief for most, pressure on China—signals Trump’s intent to reset U.S. trade policy if reelected.
Overall, the 90-day pause offers breathing space for global markets, but China’s tariff hike introduces a new layer of uncertainty in U.S.-China relations.
