President Donald Trump has announced a full suspension of all “reciprocal” tariffs that took effect at midnight, excluding those on China.
He stated that tariffs on Chinese imports will be raised from 104% to 125%.
In a Truth Social post on Wednesday, former President Donald Trump said he has “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
“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 said in his social media post. “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,” he wrote.
The increased tariffs on China followed Beijing’s announcement of new retaliatory tariffs on the United States, set to take effect on Thursday.
The Trump administration has consistently targeted China’s trade practices as part of its broader economic policy.
“We’ve had to stay the course until this moment,” Treasury Secretary Scott Bessent said on Wednesday.
The administration told countries around the world, “Do not retaliate and you will be rewarded. So every country in the world who wants to come and negotiate, we are willing to hear you,” he added.
Bessent stated that the decision “demonstrates President Trump’s commitment to trade and our willingness to engage in good-faith negotiations.”
He and Commerce Secretary Howard Lutnick were with Trump when he posted the message on Truth Social, Lutnick confirmed in a post on X.
Stocks soared following the announcement, with the Dow jumping 2,200 points, or 5.9%. The S&P 500 climbed 6.5%, and the Nasdaq surged over 8%. Markets had been under pressure in recent days due to concerns over the steep tariff increases Trump proposed last week.
