Trump halts tariffs on dozens of nations, escalates trade war with China

President Donald Trump on Wednesday announced a 90-day suspension of new tariffs on over 75 trading partners that did not retaliate against his latest round of duties.

The abrupt reversal followed several days of intense market volatility and concerns voiced by business leaders and key allies.

The move does not apply to China, which imposed retaliatory tariffs in response. Instead, the White House raised tariffs on Chinese imports to 125%, effective immediately.

Trump explained the decision in a Truth Social post, citing phone calls from other nations expressing interest in trade negotiations. He said the tariff hike on China was necessary due to the country’s "lack of respect" for global markets and alleged unfair trade practices.

Despite defending the tariffs as a tool to bring manufacturing back to the U.S. and generate revenue, Trump’s administration appeared to shift its stance following sharp declines in stock markets.

The S&P 500 and Dow Jones Industrial Average both surged after the announcement, with the Nasdaq climbing nearly 9%.

Treasury Secretary Scott Bessent characterized the pause as a strategic move to create “maximum negotiating leverage,” while Commerce Secretary Howard Lutnick said Trump’s leadership would help reset global trade dynamics.

A 10% across-the-board tariff will remain on imports from the countries not affected by higher duties, including Canada and Mexico. However, uncertainty remains about how effectively the U.S. can renegotiate trade agreements given the fluctuating nature of Trump’s tariff policies.