Trump Pauses Tariffs Globally for 90 Days, Raises China’s to 125%/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump announced a 90-day pause on new tariffs for most countries, calming global markets. However, he escalated pressure on China by raising tariffs to 125%, citing unfair trade practices. The move triggered a stock market surge but deepened uncertainty in U.S.-China trade relations.
Trump Tariff Freeze and China Hike Quick Looks
- Trump pauses new tariffs for 90 days on unspecified countries
- Raises U.S. tariff rate on China to a steep 125%
- Global markets rebound sharply, Dow jumps 2,000 points
- S&P 500 up 5.7%, Nasdaq up nearly 7%
- Tariff hike on China meant to force trade negotiations
- Economists still warn of global recession risks
- Trump says China must stop “ripping off” U.S. and others
- Unclear which countries benefit from tariff pause
Trump Pauses Tariffs Globally for 90 Days, Raises China’s to 125%
Deep Look
Trump Freezes Most Tariffs for 90 Days, Hikes China’s to 125% as Markets Rally
WASHINGTON / NEW YORK — April 9, 2025 — President Donald Trump announced a major shift in his global trade strategy on Tuesday, declaring a 90-day pause on new tariffs for most countries, while simultaneously escalating the trade war with China by raising tariffs to 125%, effective immediately.
The mixed-message announcement sparked an immediate and dramatic rally in U.S. financial markets. The Dow Jones Industrial Average surged 2,000 points, or 5%, while the S&P 500 rose 5.7%, and the Nasdaq composite soared 6.8%, reversing earlier losses that had investors worried about a potential global recession.
In a statement shared on Truth Social, Trump framed the pause as a strategic reprieve for U.S. businesses and trading partners — excluding China.
“I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump wrote, though he did not specify which nations would benefit from the tariff freeze. The White House has yet to clarify the list of affected countries.
Escalating U.S.-China Tensions
Trump’s decision to raise tariffs on Chinese imports from 104% to 125% was described as a direct response to what he views as China’s continued exploitation of global trade systems.
“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. “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.”
This move underscores Trump’s intention to pressure Beijing back to the negotiating table after multiple rounds of failed trade talks and retaliatory tariffs. China, which has already levied significant duties on U.S. goods, is expected to respond in kind, increasing the risk of another escalation in the ongoing trade conflict.
Market Reaction: Relief and Uncertainty
While the hike in tariffs on China may further strain diplomatic and economic ties, investors were largely focused on the global tariff pause, which offered a temporary sense of relief from the prolonged uncertainty that’s plagued financial markets in recent months.
“Markets were hungry for any sign of de-escalation, and even a partial pause was enough to spark a rally,” said Alan Murphy, chief strategist at Sterling Investments. “But the China move complicates things. This isn’t over.”
The rebound comes after weeks of volatility, with fears mounting that unchecked tariff increases could send the world into a recession. Rising inflation, slowing consumer spending, and strained supply chains have placed mounting pressure on global economic stability.
Global Impact and Business Response
Multinational corporations and domestic businesses alike have warned that the series of tariffs imposed since Trump’s second term began have already raised costs and reduced margins. Sectors such as manufacturing, agriculture, and tech have been hit especially hard.
With the latest announcement, companies doing business with China may now face the most intense pressure. The 125% tariff rate is among the highest ever imposed on a major trade partner and could dramatically raise the cost of everything from electronics and pharmaceuticals to machinery and industrial parts.
Meanwhile, other trading partners might welcome the temporary pause. However, uncertainty remains due to the lack of clarity around which countries are included in the 90-day suspension and how the administration defines “substantially lowered” tariffs.
Economic Risks Still Loom
Economists caution that while markets may have responded positively in the short term, the broader risks remain unchanged. A global trade slowdown, persistent inflation, and the potential for further retaliation by China could still push the global economy toward a downturn.
“This tariff pause is helpful,” said Dr. Linette Garcia, a senior economist at Brookdale Analytics, “but the China escalation is a serious concern. This strategy continues to inject volatility into global markets.”
Trump Sees Political Advantage
Despite economic concerns, Trump appeared confident that his trade strategy would play to his advantage in the upcoming 2026 midterm elections.
“We’re going to win the midterm elections and we’re going to have a tremendous, thundering landslide,” he said at the National Republican Congressional Committee dinner. “And I really think we’re helped a lot by the tariff situation that’s going on. It’s going to be legendary — in a positive way.”
With a high-stakes gamble on global trade underway, the administration must now manage competing narratives: calming markets and voters, while maintaining a tough stance against China.
The world, and Wall Street, will be watching the next 90 days closely.
You must Register or Login to post a comment.