President Donald Trump announced a dramatic shift in his trade policy today, pausing his controversial “reciprocal” tariffs on most nations for 90 days while simultaneously escalating duties on Chinese imports to 125%. The decision, posted on Truth Social, follows days of global market turmoil sparked by Trump’s initial tariff rollout on April 2, which imposed a 10% baseline tariff on all imports and higher rates on dozens of countries.
Citing outreach from “more than 75 countries” seeking trade talks and their restraint from retaliation, Trump authorized the pause and reduced the reciprocal tariff to 10% during this period, effective immediately. “These Countries have not, at my strong suggestion, retaliated in any way,” he wrote, framing the move as a negotiation tactic. However, China faced a sharper rebuke, with Trump accusing it of “disrespect” after Beijing raised its own tariffs in response, prompting the 125% hike.
Markets roared back to life, with the S&P 500 surging 9.5%—one of its biggest single-day gains since World War II—reversing a week-long slide that erased trillions in value. Treasury Secretary Scott Bessent called it a “brilliant” pivot, though Trump later admitted market volatility, including a bond sell-off, influenced his thinking. “You have to have flexibility,” he told reporters.
Critics, including Senate Minority Leader Chuck Schumer, blasted the flip-flop, with Schumer alleging Trump “caved” under pressure. Democrats argue the 10% baseline tariff still burdens consumers, while economists warn the China escalation risks a deeper trade war. Supporters, however, see it as a strategic win, opening doors for bespoke trade deals. For now, the 90-day reprieve offers breathing room—but uncertainty lingers as the White House gears up for a flurry of negotiations.
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