President Donald Trump has paused new tariffs for most countries in a surprise move, easing market fears, but sharply increased tariffs against China to 125%. The decision reflects a strategic shift as the administration seeks to negotiate new trade deals amid growing economic uncertainty.
Trump Pauses Tariffs for Most Countries
In a surprising reversal, President Donald Trump has announced a 90-day suspension on new tariffs for all countries except China. The decision was shared in a social media post and marks a major shift in the global trade war that had shaken markets just days earlier.
The pause comes amid growing fears of a global recession, with Trump urging the public to “BE COOL” in a separate online post. His message aimed to calm investors and international markets reeling from tit-for-tat trade measures.
Tariffs on China Jump to 125 Percent
Despite easing tensions with most nations, Trump intensified pressure on China. Citing Beijing’s “lack of respect” for global markets, the administration raised tariffs on Chinese goods to a staggering 125%.
This move followed China’s retaliation, which saw new tariffs pushing the total duty on U.S. imports to 84%. The White House had already imposed 104% tariffs on all Chinese goods, prompting Beijing’s sharp response.
Markets React to Policy Shift
Following Trump’s announcement, financial markets rebounded after days of sharp losses. Investors welcomed the reprieve, especially after concerns that an unchecked trade war could lead to widespread economic fallout.
U.S. Treasury Secretary Scott Bessent defended the president’s approach, stating that the administration had created “maximum negotiating leverage.” He denied that the pause was a retreat, instead calling it a strategic opening for trade talks.
Global Negotiations Begin
Bessent revealed that over 75 countries have contacted the administration for trade discussions. Talks are set to begin with key allies in Asia — Japan, Vietnam, and South Korea — in the coming days.
He emphasized that while countries are eager to avoid future tariffs, finalizing comprehensive trade agreements will take time. Bessent noted that Trump’s initial tariff wave was meant as a strong bargaining tactic.
Strategic Messaging from the White House
White House Press Secretary Karoline Leavitt reinforced the administration’s stance, saying, “When you punch at the United States of America, President Trump is going to punch back harder.” The administration is presenting the tariff strategy not as aggression, but as a calculated effort to gain favorable terms in trade talks.
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