Trump Pauses Global Tariffs for 90 Days—Except for China, Which Faces 125% Hike
Washington, United States – In a dramatic and unexpected move, US President Donald Trump announced a 90-day pause on his expansive tariff regime for all countries, except China, which will now face an unprecedented 125% tariff, up from the previously announced 104%.
Trump announced a series of posts on Truth Social, citing the “lack of respect” China has shown toward global markets as the reason for the tariff increase. “China wants to make a deal. They just don’t know how to go about it… They’ll figure it out,” Trump wrote, taking a pointed jab at President Xi Jinping.
This temporary halt in tariffs marks a significant departure from Trump’s previous position. Just a day earlier, he had reaffirmed his commitment to the tariff policy, despite growing concerns from business leaders and Republican allies about an impending global recession and the escalation of trade wars.
According to CNN, a major factor behind Trump’s sudden change was rising alarm within the US Treasury Department regarding the deteriorating bond market. Treasury Secretary Scott Bessent reportedly raised the alarm, leading White House economic advisors to intervene with an urgent briefing.
“The bond market is very tricky… I thought people were jumping a little bit out of line. You have to be flexible,” Trump told reporters, suggesting that the decision was more instinctive than planned.
The market’s reaction was immediate and positive. The Dow Jones Industrial Average surged nearly 2,500 points, gaining almost 8% in a single session. The Nasdaq soared 12.2%—its best performance in 24 years—while the S&P 500 climbed 6% to close at 5,281.44 points. Oil prices jumped more than 4%, and the US dollar strengthened in response to the news.
For India, which had been struggling with a 26% US-imposed reciprocal tariff, the pause provides a much-needed reprieve. Indian markets are expected to stabilize, and officials hope this extra time will help finalize a multi-sectoral trade agreement with Washington.
“India and the United States are strong partners… and we hope to conclude a mutually beneficial trade agreement soon,” said MEA spokesperson Randhir Jaiswal.
With markets reacting positively and diplomatic discussions reigniting, Trump’s tariff pause represents a significant shift, yet one that still targets China.
