Donald Trump presses 90-day pause button on reciprocal tariffs for most nations, but raises tariffs for China

US President Donald Trump on Wednesday announced a 90-day pause on the rollout of reciprocal tariffs on most countries including India, with the exception of China. US stock markets reacted positively to the news, showing remarkable gains.
US stock markets closed with substantial gains across all three primary indices after President Trump announced a postponement of significant new tariffs shortly following their implementation.
The Dow Jones Industrial Average recorded a notable increase of 7.9 percent, reaching 40,608.45, whilst the broader S&P 500 Index advanced by 9.5 percent to 5,456.90.
The technology-heavy Nasdaq Composite Index registered the largest gain, rising 12.2 percent to finish at 17,124.97.
The S&P 500 index climbed 5.7% after recovering from a 0.7% decline and the Dow Jones Industrial Average rose by 2,000 points, a 5% increase, whilst the Nasdaq composite advanced 6.8%, as of 11 pm.
Market participants have been urging Trump to reduce tariffs, as economists warn that these measures could trigger a worldwide economic downturn and push prices higher. The move appeared to focus the extensive trade dispute, which had previously involved the United States and numerous global partners, into a bilateral conflict between the United States and China.
Trump said that he's backing down on most nations' tariffs for 90 days amid market meltdown, but he's raising China tariffs. Reciprocal tariffs on China were raised to 125% by Trump, up 21% from the 104% announced yesterday.
"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.

Trump indicated over 75 countries had requested tariff discussions. Trump announced a temporary pause on tariff increases, citing the lack of retaliation from many nations. He stated, "I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!"
The Trump administration will maintain only a uniform 10 percent tariff on all nations, effective from Saturday, signalling a significant shift from the previously harsh duties that affected numerous US strategic partners.
"At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable," Trump said.
US Treasury Secretary Scott Bessent defended the president's position saying, "This was his strategy all along, and you might even say that he goaded China into a bad position."
Earlier Trump said that world leaders are eagerly seeking trade agreements with the United States. "I am telling you, these countries are calling us up, kissing my ass, Trump said. He added: "They are dying to make a deal. 'Please, please sir, make a deal. I'll do anything sir'."