President Donald Trump announced a 90-day pause on tariffs Wednesday afternoon, except for the tariff on China, which the president raised to 125%.
The 90-day pause, which is “effective immediately,” comes as the Trump administration prepares for trade talks with more than 75 countries, according to Trump. The president said the pause is due in part to the willingness of numerous countries to come to the negotiating table without retaliating against the United States “in any way.” The stock market saw an immediate spike following Trump’s announcement, with the S&P 500 surging 5.7%, the Dow jumping 5%, and the Nasdaq going up nearly 7%.
While most countries will see a tariff reprieve, Trump hit China with a higher tax, citing a “lack of respect that China has shown to the World’s Markets.” The increased tariff goes into effect “immediately” and comes after the Chinese government retaliated with an 84% tariff to counter Trump’s prior 50% increase.
“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 wrote on Truth Social.
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