In a dramatic trade policy shift, President Donald Trump has announced a 90-day pause on Trump tariffs for more than 75 countries, offering a 10% baseline duty during the negotiation period. However, China has been excluded from this relief — now facing an increased tariff of 125%, effective immediately.

"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%," Trump posted on social media. 

The move comes after mounting international pressure, with many nations seeking tariff discussions. Trump said he had authorized a 90-day PAUSE on existing tariffs, setting the stage for renewed trade talks.

Markets React Strongly to Tariff Pause

Following the announcement, US markets surged. The Nasdaq Composite Index jumped 10.8%, reaching 16,917.49, as investors responded positively to the suspension of the broader Trump tariffs. Other major indices also saw significant gains.

The original tariff plan had targeted both US allies and economic competitors alike. This rollback marks a softer stance — but not for China, which now faces the harshest trade penalty yet.

Latest Update

White House sources indicate that trade delegations from Europe, India, and Brazil are expected to begin talks with US trade officials by next week. Meanwhile, China's Ministry of Commerce has condemned the tariff hike, calling it “unilateral economic coercion.”

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