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On Wednesday, U.S. President Donald Trump announced a temporary pause on reciprocal tariffs for countries that haven’t taken retaliatory actions against the United States. The pause will last for 90 days and excludes China, which recently ramped up its own tariffs in response to U.S. measures.
Trump admitted that his tariff policies were making people uneasy, noting, “some people are getting a little bit afraid” and “jumping a bit out of line.” Still, he stood by his approach, expressing confidence that trade agreements would materialize with various countries—including China.
“China wants to make a deal. They just don’t know how quite to go about it… President Xi (Jinping) is a proud man… They don’t know quite how to go about it, but they’ll figure it out,” he added.
A Market Rally and Rising China Tensions
Following the announcement, U.S. stock markets experienced a strong rebound. The S&P 500 surged by 6.0%, closing at 5,281.44, marking a significant turnaround after several days of losses linked to prior tariff threats.
The boost came largely from Trump’s surprise move to ease up on most nations—though China remained a key target.
In contrast to the temporary relief granted to many countries, Trump’s stance toward Beijing intensified. The U.S. hiked tariffs on Chinese imports to a steep 104%, prompting an immediate counter-response.
China hit back by raising its own import taxes on U.S. goods from 34% to 84%, escalating the trade standoff.
Trump then responded with another escalation, this time announcing—via Truth Social—a further tariff increase on Chinese goods to 125%, to take effect without delay.
“At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable,” Trump declared.
Temporary Relief for Cooperative Nations
Amid the aggressive back-and-forth with China, Trump offered a more measured approach for other global partners.
He announced that the 90-day tariff pause would apply to duties above the standard 10% rate, calling it a gesture of goodwill toward the more than 75 countries that have avoided retaliatory measures.
According to Trump, their cooperation was due to what he described as his “strong suggestion.”
This dual-track tariff strategy—conciliatory toward some, hardline with China—has stirred both optimism and concern, as global markets continue to weigh the long-term impact of Trump’s trade playbook.
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