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Trump Announces 90-Day Tariff Pause for Most Nations, Raises Tariffs on China to 125%
In a dramatic shift in his aggressive trade strategy, U.S. President Donald Trump has announced a 90-day pause on increased tariffs for most countries, offering a temporary reprieve amid rising global economic tensions. However, China has been singled out once again, with tariffs on its exports being hiked further to a staggering 125%.
90-Day Tariff Suspension for Most Countries
The suspension, which maintains the baseline universal tariff of 10%, will apply to over 75 countries that, according to the administration, have chosen not to retaliate against U.S. tariff actions. This window is being positioned as a goodwill gesture to facilitate trade negotiations and avoid further deterioration of economic ties with key allies.
President Trump stated that this move was aimed at rewarding cooperation and fairness, while continuing to pressure countries deemed to be exploiting trade imbalances with the United States. The 90-day window is expected to see heightened diplomatic activity as countries seek long-term exemptions or concessions.
Tariffs on China Raised to 125%
In contrast to the broader pause, China has faced a severe escalation. Citing China’s recent retaliatory tariff hike to 84% on U.S. goods and accusing it of long-standing trade malpractice, the Trump administration has responded by increasing tariffs on Chinese imports to 125%. This move reinforces the hardline stance Trump has maintained toward Beijing throughout his trade campaign.
The decision marks a further deterioration in U.S.-China relations and raises fears of a prolonged economic conflict that could have ripple effects across global supply chains and markets.
Market Reactions and India’s Position
Financial markets responded sharply to the mixed message. While the broader pause lifted investor sentiment in the U.S., concerns lingered over the worsening standoff with China. The S&P 500 jumped 6% shortly after the announcement, reflecting cautious optimism.
India, which was recently hit with a 26% tariff on its exports to the U.S., has welcomed the pause and is currently evaluating the policy shift. Indian trade officials are in ongoing discussions with their American counterparts to seek further relaxation and protect domestic exporters.
This recalibrated approach by the Trump administration attempts to strike a balance between confrontation and diplomacy. While it softens the immediate impact of the tariff regime for many countries, the intensification of economic pressure on China signals that the broader trade war is far from over. The next 90 days will likely determine whether the U.S. opts for further escalation or returns to the negotiating table.
