Trump Halts 'Reciprocal' Tariffs for 90 Days, But Raises Chinese Tariffs to 125%

President Donald Trump announced a 90-day suspension on all "reciprocal" tariffs, which went into effect at midnight Washington time, with one exception: China. While the rest of the world will temporarily reduce tariffs to 10%, Beijing will see its U.S. tariffs increase to 125%, up from the current 104%.

 "In light of China's disrespect for world markets, I am increasing our nation's tariff to 125%, effective immediately," Trump wrote in a post on Truth Social. "I hope that in the not-too-distant future, China will realize that the days of taking advantage of the United States and other countries are no longer sustainable or acceptable."

In the same message, Trump also announced that he had "authorized a 90-day PAUSE and a substantially reduced reciprocal tariff, to 10%, also effective immediately." This is, therefore, a gesture of conciliation towards those countries that have not responded with trade retaliation, but also a clear toughening of the situation towards Beijing, which is still considered a threat to American economic interests.

Yes to Duties, but Selective

According to Treasury Secretary Scott Bessent, the measure represents an important signal that "President Trump cares about trade" and that the United States is willing to negotiate "in good faith" with international partners. Bessent stressed that the administration has communicated to all interested countries that "there will be benefits in not walking away from the negotiation."

 "The president has had great courage to stay the course up to this point," Bessent said in a public statement, adding that "any country that wants to come and negotiate will be heard."

Bessent himself and Commerce Secretary Howard Lutnick were also present with Trump at the time the post was published on Truth Social, as confirmed by the latter in a message on X.

 "Scott Bessent and I were with the President as he wrote one of the most extraordinary posts of his term. The world is ready to work with President Trump to fix global trade, while China has chosen the opposite direction."

Wall Street Rewards Relaxation

The announcement had an immediate impact on financial markets. Wall Street reacted enthusiastically to the news of the temporary suspension of tariffs: the Dow Jones jumped 2,200 points, marking a rise of 5.9%, while the S&P 500 gained 6.5%, and the Nasdaq recorded a surge of more than 8%. Apple recorded a 5% increase.

Stocks had recently been shaken by the prospect of the generalized tariffs announced last week by Trump, which included a 10% tax on all imports, except those from Canada and Mexico. These measures, confirmed by Bessent, remain in force for those countries not affected by the "reciprocal" tariffs.

What are your thoughts on the potential impact of these tariffs on U.S.-China relations and the broader global economy? Let us know your comments and insights in our community and follow "Heyup Newsroom" for the latest news.