Trump Freezes Global Tariffs – Except China, Which Faces 125% Hit

In a move that caught even his own trade team off guard, President Donald Trump has announced a 90-day pause on higher tariffs for most countries… but with one major exception.

China, long the focal point of his trade grievances, now faces a staggering 125% tariff on its exports to the United States, effective immediately.

The rest of the world? A flat 10%.

Markets Surge

Markets surged with the kind of urgency you’d expect from someone gasping for air.

As of writing, the S&P 500 is up 8.02%, adding 399.56 points to 5,382.33. The Nasdaq is up 10.07%, at 18,811.38. While the DJIA is up 2,595.50 points, a 6.89% rise.

Below is a post by the official White House account on X regarding the announcement:

A Negotiation Period

This abrupt about-face follows a chaotic week in financial markets. Stocks had been spiraling, economists were warning of a recession, and CEOs were picking up their phones trying to do whatever possible to find a solution.

According to Treasury Secretary Scott Bessent, over 75 countries reached out to US trade officials requesting meetings. “We’ve had more than 75 countries contact us, and I imagine after today, there will be more. So it is just a processing problem. Each one of these solutions is going to be bespoke. It is going to take some time, and President Trump wants to be personally involved. So that’s why we’re getting the 90-day pause,” Bessent said.

The 90-day window is meant to give space for negotiations, Bessent added. But if you thought this meant a softening of stance, think again. “No one creates leverage for himself like President Trump,” he stated.

The official White House account on X also posted this:

Mixed Reactions in Washington

The announcement caused a stir on Capitol Hill, especially since it came mid-testimony. US Trade Representative Jamieson Greer, who was defending the tariff policy during a House committee hearing, seemingly hadn’t been briefed. When asked about the pause, he blinked. “I understand it’s 90 days,” he said, clearly learning about the change in real time.

Democratic Rep. Steven Horsford didn’t hold back. “It looks like your boss just pulled the rug out from under you and paused the tariffs, the taxes on the American people. There’s no strategy, you just found out three seconds ago, sitting here, we saw you,” said Horsford.

Some Republicans praised the pivot. Senator Tom Cotton defended the tough stance on China, calling it long overdue. Ted Cruz chimed in too, saying Trump chose the “better path” by opening the door for new trade deals instead of locking tariffs in place.

Meanwhile, Democrats mocked the messaging. Hawaii Senator Brian Schatz, Chief Deputy Whip, wrote on X:

“OUR PLAN IS WORKING PERFECTLY AND IS JUST A NEGOTIATING TACTIC BUT IT IS ALSO GOING TO BE PERMANENT AND WE WILL BE THE WORLD LEADER IN TEXTILES…”

It went on like that. In all caps. You can see the full post below:

China: Still Square in the Crosshairs

So why is China being singled out? According to Trump’s Truth Social post, it’s about “the lack of respect China has shown to the World’s Markets.” The White House framed Beijing’s retaliation (an 84% tariff on US imports) as evidence of hostility. Bessent called it “escalation.” Leavitt, the press secretary, put it bluntly: “When you punch at the United States, President Trump punches back harder.”

This isn’t just trade rhetoric anymore. Trump’s strategy appears to blend old-school protectionism with a high-stakes bluff. Or maybe it’s not a bluff at all.

Europe, Mexico, and Canada: Tentatively Relieved

Mexico and Canada, which had faced rates of up to 25% just days ago, are included in the 10% bracket. Both nations’ markets jumped on the news. Italy’s economy minister welcomed the pause and other said G7 nations had been discussing how to bring Washington “to a reasonable position.”