US-China Trade 90-Day Pause: US President Donald Trump on Wednesday stopped tit for tat or reciprocal tariffs on more than 75 countries for 90 days. This has come into effect with his decision. However, he has not included China in this exemption but has increased the tariff imposed on it from 104% to 125%. Trump took this action after China imposed a retaliatory 84% tariff.
Table of Contents
US-China Trade 90-Day Pause
In simple terms, imposing a 125% tariff on China means that a $100 product made in China will now cost $225 when it reaches the US. The sale of Chinese products will decrease as they will become more expensive in the US.
Trump wrote on Truth Social that China has not shown respect for the global market. That is why I am increasing that tariff to 125%. Hopefully, China will soon understand that the days of looting America and other countries are over.
For the Countries That Will Deal, The Tariff Will Be 10%
Trump said that more than 75 countries have called US representatives, and these countries have not retaliated against the US in any way on my strong suggestion. Therefore, I have accepted a US-China Trade 90-day Pause. This ban on tariffs will provide time to negotiate new trade agreements.
At the same time, Finance Minister Scott Bessant said that for countries willing to negotiate with the US, this rate will be reduced to 10%. He said that some goods from Canada and Mexico used to attract a 25% tariff. Now they have also been included in the baseline tariff.
US-China Trade 90-Day Pause: Why did you increase tariffs on China?
US Treasury Secretary Scott Bessant said that Trump has encouraged countries that have not opened a front against the US by rolling back tariffs amid the growing trade war. Since China announced on Wednesday that it would increase tariffs on the US from 34% to 84%, Trump raised tariffs on China from 104% to 125%.
China Said – Would Fight Till the End Instead of Bowing Down
Amid the ongoing tariff war between China and America, China said that it will choose to fight till the end instead of ‘forcefully’ bowing down to America. Chinese Foreign Ministry spokesman Mao Ning said that China is not afraid of provocation, it will not back down.
US Stocks Soar 10% on Announcement
Just 4 hours before the announcement of stopping the tariff, Trump wrote on Truth Social, “This is a great time to buy.” After this, as soon as Trump announced to stop the reciprocal tariff, the stock markets returned to boom.
90 day pause on China tariffs
— kellyannlu17🇺🇸🐸⭐️⭐️⭐️ (@kellyannelu) April 9, 2025
7/08 is 90 days from now.
Wow look at this deltas pic.twitter.com/TnEKrTwh75
The Dow Jones jumped more than 2,600 points (7.1%). The S&P 500 rose 9.5%. The Nasdaq rose 1536 points or 10.3%. This increase in the Nasdaq is the biggest since the recession of 2008. At the same time, shares of companies like Apple, Nvidia, and Tesla also saw a jump.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗