Trump pauses tariffs on 75 countries for 90 days, raises China rate to 125%

The pause was announced hours after his global tariff policy took effect, capping a chaotic week for global financial markets and uncertainty about the world economy.

U.S. President Donald Trump said Wednesday he is pausing his reciprocal tariffs for 90 days on 75 countries that have begun negotiations on trade with the U.S., lowering their tariff rate to the baseline of 10 per cent.

The pause was announced hours after his global tariff policy took effect at midnight Wednesday, capping a chaotic week for global financial markets and uncertainty about the world economy.

Trump also announced he was raising tariffs on China once again, to a staggering 125 per cent rate, “based on the lack of respect that China has show to the World’s Markets,” he wrote on Truth Social.

“Conversely, based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” he wrote.

U.S. markets surged in response to Trump’s announcement after sharp losses in the morning and nearly a week of vanishing wealth on Wall Street.

The pause does not affect ongoing sector-specific tariffs on steel, aluminum and foreign auto sectors, or the 25 per cent tariffs on Canadian goods outside of free trade rules and 10 per cent levies on Canadian energy.

The White House did not immediately specify which countries would see a pause, but U.S. Treasury Secretary Scott Bessent said Vietnam, Japan, South Korea and India were among the countries he and other Trump administration officials were speaking with.

“Every country in the world who wants to come and negotiate, we are willing to hear you, we’re going to go down to a 10 per cent baseline tariff for them,” he told reporters outside the White House.