In a dramatic shift, US President Donald Trump yesterday announced a 90-day suspension of new tariffs for most countries, easing tensions in his escalating global trade war — but at the same time, he intensified the standoff with China, hitting the world`s second-largest economy with even steeper levies.
The surprise move, unveiled on Trump`s Truth Social platform, triggered a rally on Wall Street after days of global market turmoil.
“I have authorized a 90 day PAUSE” on higher tariffs that took effect yesterday, Trump posted, saying the decision came after more than 75 countries reached out for negotiations without retaliating against the US.
While a flat 10 percent tariff on all countries — which came into force on Saturday — will remain in place, the pause marks a striking departure from Trump’s earlier hardline tariff strategy, which had even targeted Washington’s closest allies.
However, Trump remained defiant toward Beijing, accusing China of "ripping off" the US economy.
"Given the lack of respect China has shown to the World`s Markets, I am raising the tariff charged to China by the United States to 125 percent, effective immediately," he declared.
This came only hours after Trump had hiked duties on Chinese goods to 104 percent, prompting a swift retaliation from Beijing, which raised tariffs on American imports to 84 percent.
"At some point, hopefully in the near future, China will realize that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable," Trump added.
US Treasury Secretary Scott Bessent defended the strategy, denying any backtracking. "This was his strategy all along — you could say he goaded China into a bad position," Bessent said, describing China as the "most imbalanced economy" in modern history.
Earlier, the European Union launched its own countermeasures, targeting over €20 billion worth of US products, including soybeans, motorcycles, and cosmetics — though it notably refrained from retaliating against the separate 20 percent US tariff on all goods that took effect just after midnight.
Last week, Trump had declared "Liberation Day," announcing a baseline 10 percent tariff on all countries, effective Saturday, with additional rates coming into force yesterday for many economies, including China, the EU — and even remote islands or uninhabited territories.
Despite rattling global markets, Trump tried to calm nerves, urging Americans to "BE COOL!" and assuring that "Everything is going to work out well."
