Trump Halts Tariffs on Most Nations, Targets China with Hike

President Donald Trump has shifted gears on his aggressive trade policy, announcing a 90-day pause on new tariffs for nearly all countries except China. The decision, shared via Truth Social, comes after a week of economic turbulence sparked by his initial tariff rollout, offering relief to global markets and U.S. allies.

The pause drops tariffs to a universal 10% rate for dozens of nations that refrained from retaliating against the United States. Trump praised these countries, noting that over 75 reached out to negotiate trade deals, signaling a willingness to cooperate rather than confront.

China, however, faces a sharp escalation, with tariffs jumping to 125% effective immediately. Trump justified this by accusing Beijing of disrespecting global markets, pointing to its recent 84% retaliatory tariff on U.S. goods as evidence of bad faith.

The announcement follows days of market chaos, with stocks plunging as fears of a trade war loomed. After the pause was revealed, the S&P 500 soared 7%, and the Nasdaq climbed nearly 10%, reflecting investor optimism about de-escalation with most trading partners.

Treasury Secretary Scott Bessent called it a calculated move, insisting Trump always planned to reward non-retaliatory nations. He framed China’s response as a misstep, positioning the U.S. as open to fair negotiations with allies willing to talk.

Originally, Trump’s tariffs hit over 90 countries with rates as high as 49%, aiming to level the playing field for American workers. Critics warned of inflation and recession risks, while supporters hailed it as a tough stance against unfair trade practices.

China’s retaliation came hours after Trump’s initial tariffs took effect, raising duties on U.S. imports from 34% to 84%. This tit-for-tat exchange fueled the president’s decision to single out Beijing while sparing others.

The European Union, which approved its own retaliatory tariffs set for April 15, now faces uncertainty. Analysts question whether the EU will adjust its plans or risk losing the 10% rate offered during the pause.

Farmers and businesses expressed mixed reactions, with some relieved by the pause but others wary of China’s response. Illinois Rep. Darin LaHood highlighted rural anxiety, noting agriculture often bears the brunt of trade wars.

Trump’s team plans “bespoke” talks with each country, with the president personally involved. Bessent emphasized flexibility, hinting at deals on issues like energy and currency policies over the next three months.

For now, the U.S. steps back from a global trade cliff, focusing its fight on China. Markets and allies breathe easier, but the 90-day clock is ticking, and the outcome remains anyone’s guess.