Trump Freezes Global Tariffs for 90 Days—China Hit With Sharp Increase to 125%

Trump Freezes Global Tariffs for 90 Days—China Hit With Sharp Increase to 125%

DECK
While the world gets a breather from U.S. tariffs, China faces steep penalties amid growing tensions; Wall Street rallies on the unexpected decision.

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KEY FACTS 

• What: 90-day suspension of tariffs for all nations except China

• Where: Announced from Washington, D.C.

• When: Declared on Wednesday, April 9, 2025

• China Tariff Hike: Increased immediately to 125%, up from 104%

• Market Response: Dow up 2,500 points; Nasdaq sees best day in 24 years

• India's Position: Positive outlook as negotiations continue over trade deals

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SITUATION SNAPSHOT 
In an unexpected pivot, President Trump reversed course on his aggressive trade policies by suspending tariffs on most nations for three months. Yet the move came with a sharp sting for China, which now faces a dramatic tariff spike. As the markets rebounded, the global economic community scrambled to interpret the implications of this surprise development.

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WHAT WE KNOW 
President Donald Trump declared a temporary halt to his broad-reaching tariff plan on Wednesday, sparing over 75 countries who, according to him, chose dialogue over retaliation. During this 90-day period, a symbolic 10% reciprocal tariff will apply.
However, China was excluded from the reprieve. Trump announced that tariffs on Chinese goods would rise to 125% immediately.

On Truth Social, he posted:
'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. At some point, hopefully in the near future, China will realize that the days of ripping off the US and other countries, is no longer sustainable or acceptable.'

He further remarked,
'China wants to make a deal. They just don't know how quite to go about it...President Xi Jinping is a proud man. They don't know quite how to go about it, but they'll figure it out.'

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WHAT’S NEXT 
Officials anticipate further updates as the U.S. Treasury and trade departments monitor the effects of the freeze. International partners, including India, are expected to push for quicker resolutions to trade negotiations. Meanwhile, market watchers brace for China’s response, which could include retaliatory measures or renewed diplomatic overtures.

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VOICES ON THE GROUND 
'The bond market is very tricky, I was watching it. The bond market right now is beautiful. But yeah, I saw last night where people were getting a little queasy. We didn't have access to lawyers, or it was just wrote up. We wrote it up from our hearts, right? It was written from the heart, and I think it was well written too, but it was written from the heart,' President Trump said during a press briefing.

'I thought that people were jumping a little bit out of line...They were getting yippie, you know, they were getting a little bit a little bit afraid. You have to be flexible,' he added.

India's Ministry of External Affairs Spokesperson Randhir Jaiswal commented:
'India and the United States are very strong partners when it comes to trade relations, economic relations, investment relations, commercial relations, and we hope that these relations will continue to foster and deepen. As far as trade issues are concerned, we are in negotiations for a bilateral trade agreement, and hopefully we will be able to address these issues and conclude this particular agreement expeditiously.'

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CONTEXT 
The U.S. has been navigating turbulent trade waters under Trump’s administration, marked by tit-for-tat tariffs, especially with China. The pause appears to reflect internal economic concerns, particularly bond market volatility and fears of recession. Analysts point to growing pressure from both Republican allies and economic advisors as pivotal in influencing the president’s sudden change in direction.

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REPORTER INSIGHT
Behind the podium, Trump’s off-the-cuff remarks contrasted sharply with the serious economic stakes involved. While the president insisted the decision was heartfelt, insiders suggest the sharp bond market selloff played a central role. The markets may have found temporary relief, but uncertainty looms as the 90-day clock ticks.