Trump Announces 90-Day Pause On Reciprocal Tariffs; Raises Levies For China

US President Donald Trump has announced a 90-day pause for the reciprocal tariffs he had just imposed on dozens of countries. The crucial announcement came less than 24 hours after steep new tariffs kicked in on most trading partners. The White House reportedly said that a 10% blanket duty on almost all US imports will remain in effect.

At the same time, Trump increased tariffs on goods from China to 125%, saying that Beijing should not have retaliated against his earlier trade actions. Notably, Beijing had raised its levies on American goods to 84% on Wednesday. “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 in a social media post. Meanwhile China, America's third-largest trading partner, earlier warned that it would “fight to the end” if the US moved forward with further tariffs.

Global markets surged after Trump announced 90-day pause on tariffs. According to a BBC report, the S&P 500 soared 9.5% in the biggest one-day rally since 2008, following days of turmoil sparked by the reciprocal tariffs. However, the levies on goods from China remain an economic challenge.