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In a surprising move on Wednesday, U.S. President Donald Trump announced a 90-day suspension of his sweeping reciprocal tariffs on all countries—except China. The announcement marked a dramatic shift from his hardline trade stance just a day earlier and came amid growing concern about the global economic impact of his tariff policies.
According to Trump, the temporary pause was granted after more than 75 countries engaged in negotiations with the U.S. and chose not to retaliate against the tariffs. During the 90-day period, a significantly reduced tariff of just 10% will be applied across the board.
However, China was notably excluded from the tariff break. Trump declared an immediate hike in tariffs on Chinese goods, raising them from 104% to a staggering 125%. In a post on his social media platform, Truth Social, Trump justified the move by citing what he called China’s “lack of respect” for global markets.
“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,” he wrote. “At some point, hopefully in the near future, China will realize that the days of ripping off the US and other countries is no longer sustainable or acceptable.”
He added that China appeared eager to negotiate, but lacked direction. “President Xi Jinping is a proud man. They don’t know quite how to go about it, but they’ll figure it out.”
Trump’s dramatic pivot came after mounting pressure from Republican lawmakers, business leaders, and global markets. Many warned that the escalating tariffs risked igniting a trade war and triggering a global recession. Despite their urging, Trump had repeatedly insisted that his policies would not change.
What ultimately tipped the scales, however, was rising alarm within the U.S. Treasury Department. According to a CNN report, Treasury Secretary Scott Bessent and senior White House economic officials briefed Trump on a worrying selloff in the bond market, prompting him to reconsider.
At a press conference following the announcement, Trump acknowledged the market anxiety, describing his decision as a spontaneous one. “The bond market is very tricky, I was watching it,” he said. “We didn’t have access to lawyers. We just wrote it up from the heart. And I think it was well written, too.”
He added, “I thought people were jumping a little bit out of line… They were getting a little bit afraid. You have to be flexible.”
Markets responded swiftly and positively to the news. Wall Street saw one of its strongest sessions in years, with the Dow Jones Industrial Average surging nearly 2,500 points—an almost 8% gain. The Nasdaq soared by 12.2%, its best performance in 24 years, while the S&P 500 rose 6% to 5,281.44. Oil prices climbed over 4%, and the U.S. dollar strengthened.
India, which had been hit by a 26% tariff on its exports to the U.S., also stands to benefit from the 90-day pause. The temporary relief provides breathing room for New Delhi as it continues trade negotiations with Washington.
India’s Ministry of External Affairs spokesperson Randhir Jaiswal confirmed that bilateral discussions are underway to resolve trade tensions. “India and the United States are very strong partners when it comes to trade, investment, and economic relations. We hope these relations will continue to deepen,” he said.
Jaiswal added that negotiations are progressing toward a mutually beneficial, multi-sectoral trade agreement. “We are in negotiations for a bilateral trade agreement, and hopefully we will be able to conclude it expeditiously.”
