In a surprising shift, US President Donald Trump on Wednesday announced a 90-day pause on his aggressive tariff policy affecting all countries—except China. The move, which seemed unlikely just a day prior, came after weeks of pressure from business leaders and Republican allies warning of a global economic backlash.
Trump stated that over 75 countries had agreed to negotiate instead of retaliating against the United States, prompting his decision to temporarily ease the sweeping tariffs. During this 90-day period, a reduced reciprocal tariff of 10% will be implemented, rather than the previously imposed higher rates.
China Faces Steep Tariff Hike
However, Trump singled out China for harsher treatment. Effective immediately, tariffs on Chinese goods will rise to 125%, up from the already steep 104%.
“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,” Trump wrote on Truth Social.
“China wants to make a deal. They just don’t know how quite to go about it… President Xi Jinping is a proud man… but they’ll figure it out.”
Why the Sudden Pause?
Trump’s change of heart appears to stem not from political pressure, but from growing concerns within the US Treasury Department. According to CNN, Treasury Secretary Scott Bessent personally urged Trump to reconsider after officials warned of an escalating selloff in the US Treasury market—an indicator of deepening economic anxiety.
Despite previously asserting that “My policies will never change”, Trump’s pivot suggests that economic risks—not diplomacy—ultimately led to the temporary easing of trade tensions.
