Trump pauses higher tariffs on most trade partners

Trump pauses higher tariffs on most trade partners for 90 days; raises China tariffs to 125%; Stocks soar most since 2020.

▪Trump’s about face came after higher reciprocal duties on 56 nations and the EU went into effect at midnight, causing market turmoil and recession fears.

▪Trump's announcement led to a surge in stocks, with the S&P 500 soaring +7.3% and NDX rising +10.1%.

04/09/2025 13:45:57

(Bloomberg) -- President Trump said he would pause higher reciprocal tariffs for 90 days on dozens of trade partners, while raising duties on China to 125%.

The president’s about-face comes roughly 13 hours after higher reciprocal duties on 56 nations and the European Union went into effect, a move that fueled market turmoil and stoked recession fears. The president came under massive pressure from business leaders and investors to reverse course.

“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump posted on social media.

It wasn’t immediately clear which nations would receive tariff relief. Those who do would still be taxed at the 10% baseline rate that went into effect on Saturday. Trump said that more than 75 countries had contacted his administration to negotiate on trade barriers and “have not, at my strong suggestion, retaliated in any way, shape, or form.”

Trump also said he was raising rates on China over its refusal to negotiate. The president had previously imposed a 104% charge on Chinese imports, which Beijing responded to with a 84% charge on American goods.

“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump said in a social media post on Wednesday.

Treasury Secretary Scott Bessent on Wednesday couched the turnabout as a victory for Trump, telling reporters the president “created maximum negotiating leverage for himself” in talks with other nations. He said he would be speaking to officials from Vietnam, Japan, India and South Korea in the coming days.

Stocks surged moments after Trump’s announcement with the S&P 500 rising more than 7% for the day and Nasdaq rising more than 10%.

Trump's announcement came after days of mounting market stress and a chorus of pleas from his billionaire allies that he pause the implementation of his global tariff program.

The euphoric reaction lifted stocks after four sessions of volatile, high-volume trading pushed the S&P 500 to the brink of a 20% bear-market plunge.