WASHINGTON — President Trump announced Wednesday that his “reciprocal” tariff scheme was being paused for 90 days in response to overtures from dozens of countries — but duties on Chinese imports would be heightened to 125% due to a “lack of respect” from Beijing.
“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump wrote on Truth Social, sending Wall Street’s major indices soaring exactly one week after his “Liberation Day” announcement caused markets to plummet.
The announcement locks in a 10% tariff rate on most imports — including those from Mexico and Canada, which were initially exempted, Treasury Secretary Scott Bessent said — until July 8, giving the administration time to hammer out “tailor-made” deals with interested nations.
“More than 75 countries” had contacted the White House to discuss one-for-one trade deals, Trump claimed, but China — who initially got hit with a 34% tariff increase that was raised to 84% at 12:01 a.m. Wednesday, chose to levy the same rate against US goods, leading Trump to escalate the trade war between the world’s two largest economies.
“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 began his post. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”
Bessent predicted earlier this week it could take until June for the administration to finalize one-for-one agreements with nations on trade and other matters.
Trump's sweeping tariffs explained
- A new 10% baseline rate and harsher “reciprocal” levies will impact dozens of countries, including key allies such as European Union members, Japan and Israel.
- Online Chinese retailers, such as Temu and Shein, are no longer exempt from tariffs, due to the closing of a trade loophole on de minimus goods.
- A 25% tariff has been issued on foreign-made cars, which impacts roughly half of all vehicles sold in America.
- Following Trump’s “Liberation Day,” the Dow plunged more than 1,000 points over fears of an all-out trade war.
“This was his strategy all along,” Bessent told reporters outside the White House following Trump’s announcement, denying that the pause was due to America’s stock markets erasing trillions of dollars in value during the previous four trading days.
“He and I had a long talk on Sunday, and this was his strategy all along. You might even say that he goaded China into a bad position,” Bessent insisted. “They responded, and they have shown themselves to the world to be the bad actors.”
“Trump created maximum negotiating leverage,” the treasury secretary went on, adding that the president “wants to be personally involved” in current and future negotiations.
Bessent said he was meeting with a Vietnamese delegation later Wednesday for talks to avoid a 46% Trump tariff and had attended a Japanese embassy event Tuesday night where that nation’s 24% rate was broached.
He did not respond to a shouted question about why the European Union will face a lower 10% tariff for three months — avoiding a 20% “reciprocal” rate — despite following China in issuing retaliatory tariffs earlier Wednesday.
The decision to adopt a pause — after publicly insisting there would not be one — “seems like it was all Trump” rather than a recommendation by a particular adviser, one administration official told The Post.
“It’s ‘The Art of the Deal’,” said another official, referring to Trump’s 1987 book, a signed paperback copy of which Israeli Prime Minister Benjamin Netanyahu left the White House clutching Monday after promising to end Israel’s trade surplus and eliminate all tariffs and non-tariff barriers on US goods.
