Trump Announces 90-Day Pause on Reciprocal Tariffs, Raises Levy on China

China is currently facing 125% tariffs, the president announced.

President Donald Trump announced Wednesday that he had suspended mutual tariffs that came into effect early in the 90-day day, and was also raising prices in China.

In the Social Post of Truth, Trump said “we approved a 90-day suspension and also quickly took effect on mutual tariffs that had dropped significantly during this period.”

Trump said the decision to suspend the full impact of tariffs was for over 75 countries to contact White House officials to “negotiate a solution” to the new obligation.

These countries said they “have not retaliated against the United States in any way.”

Meanwhile, China is currently facing a 125% tariff, according to Trump, which was decided hours after Beijing said it would impose higher tariffs on US products.

The president said he has shown a “lack of respect” for how the Chinese administration treats trade with the world and the United States.

“I hope at some point, we will recognize that in the near future, the era in which China will tear the US and other countries apart is no longer sustainable or acceptable,” he writes.

Based on his true social post, Trump did not inform him that he had suspended the baseline 10% tariffs that came into effect last weekend.

Minutes after his announcement, White House press chief Karoline Leavitt told reporters that Rebel would be “defeated by the “universal 10% tariff” on Bar China, all countries.

Last week, Trump announced tariffs at baseline 10% in almost every country, as well as higher fees for major US trading partners, including China. Beijing announced on Wednesday that it would collect high US imports, prompting Trump to announce it.

Commerce Department Secretary Howard Lutnick wrote Wednesday that he met with Treasury Secretary Scott Bescent and Trump.

“The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction,” Lutnick wrote on social media platform X.

In response to the announcement, Bescent told reporters outside the White House that Trump “had great courage to keep the course up to this moment,” and the administration said, “I’ve said that countries will not be retaliated and you will be rewarded, so every country in the world wants to negotiate.”

Earlier on Wednesday, Bescent told a banker’s meeting that countries pivot towards China in trade could face consequences.

Following Trump’s announcement of a suspension, the Dow Jones industrial average has skyrocketed over 2,000 points, or more than 5.7%. The Nasdaq rose 8.7%, while the S&P 500 rose 6.8% as of 1:45pm (East of the US).

Since Trump announced his tariff plans on April 2, three major US stock markets have found losses, but volatility has increased, sparking warnings from economists and bankers.