Reciprocal Tariffs Paused for Most Countries, Not for China
In a midday announcement posted to Truth Social, U.S. President Donald Trump declared a 90-day pause on reciprocal tariffs for all nations except China. The update included an immediate increase in the tariff rate on Chinese imports to 125%.
Citing “a lack of respect” from China toward global markets, the President emphasized that the tariff hike was effective immediately. At the same time, the paused reciprocal tariff rate for other countries was lowered to 10%, also effective immediately.
Strong Market Reaction
The announcement sparked a sharp rally in U.S. equity markets:
Dow Jones Industrial Average surged 2,600 points (+6.9%)
S&P 500 rose 396 points (+8%)
Nasdaq Composite jumped 1,566 points (+10.3%)
This rebound followed last week’s market volatility triggered by the initial rollout of reciprocal tariffs on over 180 countries.
Global Response and China’s Retaliation
While over 75 countries have reportedly contacted U.S. representatives to begin negotiations, China has taken a more confrontational position. Beijing responded by raising tariffs on U.S. goods to 84%, reaffirming its commitment to “fight to the end” in what it views as a trade standoff.
Trump noted that other countries have refrained from retaliation, suggesting active diplomatic channels involving the Departments of Commerce, Treasury, and the U.S. Trade Representative.
Strategic Framing
The move has been described in financial circles as “masterful” and a strategic playbook moment. Hedge fund manager Bill Ackman referred to it as “Textbook, Art of the Deal,” underscoring the calculated timing of the announcement and its immediate market impact.
Monitoring Trade Implications
For those tracking shifts in economic policy, the Economics Calendar API provides a snapshot of scheduled trade-related announcements that could influence upcoming negotiations or market direction.
Simultaneously, analysts may assess broader sentiment shifts using the Price Target Summary API, particularly in sectors affected by tariffs.
Conclusion
With tariffs paused for many and raised for one, the current trade landscape remains fluid. Ongoing dialogue with more than 75 countries may shape how the 90-day pause evolves, while China’s firm stance sets the stage for further developments in one of the world’s most watched trade relationships.
