The world was watching U.S. President Donald Trump, hoping for some room to negotiate amid the tariff war. In response, Trump granted a 90-day pause on tariffs for partner countries, offering them a much-needed breather. This move opens the door for fresh negotiations and a more optimistic outlook in the middle of the trade conflict.
President Donald Trump announced a 90-day pause on additional tariffs for 75 U.S. trading partners who have not retaliated against his administration’s escalating trade regime. Trump posted on X just before 1:30 p.m. Wednesday, explaining that the move responded to outreach from these countries. They had contacted the administration to discuss trade issues and barriers identified by the White House.
Trumps’s Tariff Pause Causes A Market Rally
Markets reacted sharply. The S&P 500 surged over 7%, the Nasdaq jumped 9%, and the Dow Jones Industrial Average rose nearly 7%, gaining more than 2,000 points. Investors welcomed the temporary relief from trade tensions, though questions remained about the long-term impact of the administration’s broader tariff strategy.
10% Tariff Remains During Pause
Trump clarified in his post that while the 90-day pause halts further tariff hikes for those 75 countries, a 10% across-the-board duty would remain in place during the suspension period. “Based on the fact that more than 75 Countries have called Representatives of the United States… I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump wrote.
It was unclear which countries the pause included. Earlier Wednesday, the European Union voted to impose fresh retaliatory tariffs, but those won’t take effect until next week, potentially excluding the EU from the pause.
Commerce Secretary Supports Trump’s Move
Commerce Secretary Howard Lutnick, a key figure in shaping the administration’s trade messaging, echoed Trump’s announcement on X. “The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction,” Lutnick posted. He also noted he was with the president when the initial message was posted.
Tariffs on China Rise to 125%
Alongside the temporary relief for other nations, Trump announced a sharp escalation in duties against China. “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.
The dramatic move shows the administration’s deepening trade conflict with Beijing, as it simultaneously opens the door to negotiations with other global partners.
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