US President Donald Trump made a surprising move on Wednesday, halting new tariffs for most countries with a 90-day freeze, but imposed higher tariffs on China, escalating the trade tensions between the two largest economies. Trump’s decision followed global market volatility and was welcomed by Wall Street, with stocks surging after the announcement.
In a post on his Truth Social network, Trump explained the pause in tariffs, stating that over 75 countries had contacted the US for negotiations without retaliating against the country. However, a 10 percent tariff on all countries, which started on Saturday, will remain. The president criticized China for taking advantage of the US and raised tariffs on Chinese goods to 125 percent, marking a significant increase from the previous 104 percent.
China retaliated with increased tariffs on US imports, and the European Union also responded with countermeasures against US products due to the US’s steel and aluminum tariffs. Despite this, the EU did not target the new 20 percent tariffs that took effect on Wednesday.
In response to market turmoil, Trump urged Americans to stay calm, assuring them that things would improve. The announcement led to a sharp rebound in US stock markets, with the S&P 500 rising by 6 percent.
While world leaders, including Japan and South Korea, sought trade deals with the US, China expressed opposition to the escalating tariffs, warning of further economic harm. US Treasury Secretary Scott Bessent cautioned that aligning with China could be damaging.
Trump’s trade strategy aims to bring manufacturing back to the US and reduce reliance on cheap imports, particularly from China. Meanwhile, US Defense Secretary Pete Hegseth warned against Chinese threats amid growing tensions.
