In a dramatic shift in U.S. trade policy, President Donald Trump has temporarily slashed tariffs to 10% for most American trade partners. The move, effective immediately, will last 90 days to allow room for fresh negotiations. This pause follows the enforcement of broader reciprocal tariffs affecting goods from nearly 90 countries just hours earlier.
While offering relief to several nations, Trump took a harder stance on China, jacking up tariffs on Chinese imports to a staggering 125%. In a post shared via social media, the president cited China’s “lack of respect” toward global markets as the rationale for the sharp increase. China, in response, had earlier raised its own tariffs on U.S. goods to 84%.
Trump stated that over 75 countries have reached out to U.S. officials to open trade talks since the tariffs were announced last week. The administration appears poised to enter a series of negotiations as the 90-day window begins, aiming to recalibrate international trade agreements.
The markets responded swiftly and positively to the announcement. U.S. stock indices soared, with the S&P 500 climbing 7%, marking its biggest single-day rally in five years. The rebound comes after a four-day losing streak, reflecting investor relief and renewed optimism over potential trade resolutions.
Speaking to reporters later in the day, Trump said the decision was meant to temper rising anxiety. “They were getting a little bit yippy, a little bit afraid,” he remarked. Treasury Secretary Scott Bessett backed the move, saying the tariff pause had always been part of the administration’s broader strategy, despite prior denials from White House officials.
