In a dramatic shift in U.S. trade policy, President Donald Trump has announced a three-month pause on all “reciprocal” tariffs, with the exception of those on China. The pause takes immediate effect, reversing his earlier stance on maintaining historically high tariffs.
However, tariffs on Chinese goods will not only remain but increase significantly—from 104 to 125 percent—after China imposed additional retaliatory tariffs earlier on Wednesday.
President Trump said all other countries subject to reciprocal tariffs will now revert to a standard 10 percent import rate. He cited China’s “lack of respect” for global markets as the reason behind the sharp hike.
Wall Street responded positively to the announcement, with major indices surging. The Dow gained over 2,700 points, while the S&P 500 and Nasdaq rose 9.2 and nearly 12 percent, respectively.
Despite the policy reversal, Trump defended the move, saying flexibility is crucial in global trade negotiations. Treasury Secretary Scott Bessent described the pause as a part of the President’s long-term strategy, though U.S. Trade Representative Jamieson Greer admitted he wasn’t informed until after the decision was made.
About the Author
