#TariffsPause
President Donald Trump announced a surprising three-month suspension of all “reciprocal” tariffs that had just taken effect at midnight, excluding China. This marked a major shift for a president who had previously stood firmly behind historically high tariff rates. While tariffs on other countries would be reduced back to a general 10% rate, Trump made it clear that tariffs on China would not only stay but would actually rise—from 104% to a steep 125%. This escalation came after China introduced additional retaliatory tariffs against the United States earlier in the day.
In a statement on social media, Trump said, "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." He expressed hope that China would soon recognize that exploiting the U.S. and other nations would no longer be tolerated.
Speaking with reporters, Trump emphasized that negotiations with China were ongoing, claiming there was a "tremendous amount of spirit" toward reaching an agreement. Meanwhile, Mexico and Canada were largely exempt from the 10% universal tariff, continuing under the rules of the US-Mexico-Canada Agreement, although sector-specific tariffs still applied.
The stock market responded positively to the news, with a strong rally after fears of harsher trade measures eased, despite the ongoing 10% universal tariff on imports.