Image Credentials: Image Title: Trump Halts Most Tariffs for 90 Days Amid Market Turmoil, Escalates China Duties to 125% Source: AI-Generated Image (DALL-E) Date: April 2025 Attribution: Created by AI-generated imagery (DALL-E), and it does not depict a real-world scene.
By Staff Writer with Agencies
WASHINGTON, D.C. – In a stunning about-face, President Donald Trump has announced a 90-day suspension on tariffs for most nations while simultaneously raising tariffs on Chinese imports to a historic 125%, intensifying what analysts are calling a full-blown U.S.–China economic standoff.
The move comes in response to increasing market instability, with major U.S. indices in a downward spiral and global financial markets rattled. As panic gripped investors, President Trump turned to Truth Social to announce his tariff recalibration, framing it as a strategic pause to encourage trade negotiations.
“Over 75 countries have reached out to us for talks, and many have not retaliated,” Trump posted. “This is a reciprocal move—effective immediately.”
The result? A dramatic 9.5% surge in the S&P 500—a sign of cautious relief—but uncertainty still looms large.
A Shift in Tone
President Trump, who returned to the White House last year promising to combat inflation and protect American industry, has until now championed aggressive tariffs as a key tool. But falling bond prices and rising interest rates—what he called a sign people were “getting queasy”—appear to have forced his hand.
Speaking to reporters on Wednesday, Trump admitted, “People were yippy. I saw the market, I saw the bond prices. This morning, we acted.”
The 10% baseline tariff now replaces previously higher rates: 20% on EU goods, 24% on Japan, and 25% on South Korea. However, Canada and Mexico remain subject to 25% duties under a separate executive order tied to fentanyl trafficking.
China Targeted
China remains the clear focus of the administration’s trade ire.
Trump’s decision to increase Chinese import tariffs to 125% is the largest trade penalty in modern U.S. history. Treasury Secretary Scott Bessent described the move as a “strategic isolation” of China, calling the upcoming talks with other nations “bespoke” and “a chance to reset trade on our terms.”
Still, the administration offered conflicting narratives. While Bessent claimed the pause was driven by diplomacy, Trump bluntly stated: “Markets pushed me. But this is how deals get done. It wasn’t a negotiation—until it was.”
Markets & Mixed Messages
While Wall Street showed short-term enthusiasm, uncertainty remains. Economist John Canavan of Oxford Economics cautioned, “We’re still seeing very mixed signals. This might be a truce, but not the end of the war.”
Bill Ackman, a hedge fund manager and prominent Trump supporter, initially criticized the policy, posting on X:
“Stock market’s down, bond yields are up—these aren’t markers of success.”
Hours later, he reversed course, praising Trump’s move as “Textbook Art of the Deal.”
Global Response & Warnings
The international response has been cautious but concerned. Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, warned that the continued U.S.–China standoff could lead to “severe damage to the global economic outlook” and further fragmentation along geopolitical lines.
White House Press Secretary Karoline Leavitt dismissed criticism, stating that the pause proves “the world is coming to us, not China.”
But even allies remain wary. With negotiations set to unfold over the next 90 days, leaders and markets alike are bracing for what comes next.
What’s Next?
• 10% tariffs in effect for most countries for 90 days
• 125% tariffs on Chinese goods begin immediately
• Country-by-country negotiations to begin this week
• Canada & Mexico remain under separate tariff order
As the administration walks a tightrope between economic nationalism and global diplomacy, one thing is clear: the next three months could reshape the future of international trade—and Trump’s legacy.
Staff Writers at Open Chronicle produce trusted journalism, strategic analysis and authoritative reference content across global affairs, geopolitics, defense, science, history, technology, business, culture and sport. Their work combines accurate reporting with historical perspective and analytical depth, helping readers understand not only what is happening, but why it matters. Beyond daily news coverage, Staff Writers contribute to the Open Chronicle Encyclopedia, investigative features, original research projects and long-form reports, building a comprehensive knowledge platform designed to inform, educate and preserve reliable information for a global audience.