Trump temporarily drops tariffs to 10% for most countries, hits China harder with 125%

 

Trump Temporarily Lowers Tariffs for Most Nations, Hikes China’s Rate to 125%

President Donald Trump on Wednesday announced a 90-day reduction in tariffs to 10% on imports from most U.S. trading partners, aiming to create space for renewed trade negotiations. The move comes just hours after nearly 90 countries were hit with heightened reciprocal tariffs by the U.S.

In a post on social media, Trump also declared that tariffs on Chinese imports would be increased to 125%, effective immediately, citing China’s “lack of respect for the World’s Markets.” China, the U.S.’s third-largest trade partner, had earlier in the day announced it would raise tariffs on American goods to 84%.

The tariff pause appears to have spurred a flood of diplomatic activity, with Trump claiming that “more than 75 countries” had reached out to begin negotiations following last week’s sweeping tariff announcement.

Markets responded with enthusiasm. All three major U.S. stock indexes surged, with the S&P 500 jumping 7%, marking its strongest one-day performance in five years.

Pressed on the sudden policy shift, Trump said his decision was prompted by an overreaction from global markets and political circles. “They were getting yippy, a little bit afraid,” he told reporters at the White House. “I thought people were jumping a little bit out of line.”

Treasury Secretary Scott Bessent, who had previously denied any pause in tariffs was coming, told reporters the rollback was part of Trump’s plan all along. “This was his strategy from the beginning,” Bessent said.

Despite days of mixed signals from the administration, Wednesday’s announcement signals a shift toward negotiation — at least temporarily — even as tensions with China continue to escalate.