Former President Donald Trump has approved a 90-day break from new trade tariffs for most countries. This decision comes as part of a broader push to reset global trade ties. However, the pause does not apply to China. Instead, Trump announced much tougher action, raising tariffs on Chinese goods to a steep 125%.
In a message shared on Truth Social, Trump said the move targets China’s “disrespect for the World’s Markets.” He stressed that many countries had reached out to Washington for new trade deals. These talks, he said, were a key reason behind the temporary tariff freeze.
The White House later confirmed that the 90-day pause will apply to almost all trade partners. A smaller 10% tariff will remain in place during the talks.
Markets Rally After Tariff Pause
The global markets reacted right away to the announcement. On Wall Street, the Dow Jones Index shot up by 2,000 points within minutes. Investors were quick to welcome the break from what Trump had earlier called “Liberation Day” tariffs.
Before the pause, the U.S. had imposed tough new duties on imports. China now faces a 104% standard tariff, which has now been hiked even further to 125%. Other nations are not in the clear either. Under the current plan, the EU faces 20%, Japan 24%, and South Korea 25%.
These measures were rolled out just after midnight, with U.S. officials saying that further changes are possible.
White House Says Tariff Talks Ongoing
White House officials tried to calm business leaders and lawmakers concerned about uncertainty. They said all the new tariffs remain open to change. Countries can negotiate better terms over the next three months.
Officials urged patience, noting that these are early steps in a broader trade reset. “These tariffs are about leverage, not punishment,” said one senior official.
Trump echoed that point, saying that only countries that “fully respect fair market rules” will see any drop in tariffs. He also made clear that no final deals have been signed yet.
Over 75 Countries Want New Deals
Trump stated that more than 75 countries have already asked to reopen trade talks with the U.S. The administration sees this as a sign of success. Trump’s team said they will take time to review each offer in detail.
Several Republican lawmakers and business leaders have asked for more clarity. They want a timeline and specific goals. However, the White House has not released a full roadmap yet.
Officials confirmed that meetings with trade partners will continue throughout the 90-day pause.
Global Impacts of U.S.-China Tensions
Trump’s new tariffs on China are the most severe since the start of the trade conflict. The move adds more pressure to an already tense relationship. Experts say the decision could hit tech, electronics, and machinery sectors hardest, as they rely heavily on Chinese imports.
Some analysts worry that China may strike back with tariffs of its own. Others say Beijing might take a wait-and-see approach, hoping the talks lead to progress.
For now, U.S. companies that depend on Chinese goods are bracing for higher costs.