In a significant policy pivot, President Donald Trump announced Wednesday a temporary reduction in his controversial global tariff plan, offering a 90-day period of lower duties for countries willing to negotiate, while simultaneously intensifying trade pressures on China.
Trump revealed via Truth Social that most nations will face a universal 10% tariff during this three-month window instead of the higher country-specific “reciprocal” tariffs he had ordered last week. The dramatic shift comes after more than 75 countries reached out to U.S. officials seeking negotiations rather than engaging in retaliatory measures.
China stands as the notable exception to this reprieve. Trump has increased tariffs on Chinese imports to 125%, up from the previous 104% rate, citing “the lack of respect that China has shown to the World’s Markets.” The heightened duties mark a significant escalation in the ongoing trade dispute between the world’s two largest economies.
Treasury Secretary Scott Bessent, speaking to reporters outside the White House, emphasized that Trump wishes to be “personally involved” in the trade negotiations with various countries. “Each one of these is going to be a separate, bespoke negotiation,” Bessent explained. When asked whether market volatility influenced the decision to implement the pause, he dismissed the suggestion, attributing it instead to “the large number of inbounds” from countries seeking to negotiate.
Commerce Secretary Howard Lutnick described the moment as historic, stating on social media that he and Bessent “sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency.”
The 90-day pause represents a dramatic shift from Trump’s initial approach, which had triggered substantial market turmoil since its announcement last week. The Dow Jones Industrial Average and other major indices experienced violent swings, with trillions in market value temporarily erased amid fears of a global trade war.
Beijing’s response to the increased tariffs has been defiant. China announced it would raise its retaliatory duties on U.S. imports to 84%, up from the previous 34% rate, and filed a complaint with the World Trade Organization alleging violations of international trade law. The Chinese commerce ministry has vowed to “fight till the end if the U.S. side is bent on going down the wrong path.”
The evolving trade conflict has drawn criticism from both Democratic lawmakers and prominent business figures. During a House Ways and Means Committee hearing Wednesday, Representative Brad Schneider (D-Ill.) bluntly questioned U.S. Trade Representative Jamieson Greer about the administration’s strategy, asking: “What did he and you think was going to happen after unilaterally declaring a global trade war?”
Home Depot co-founder Ken Langone has publicly criticized Trump’s approach, calling the 46% import duties on Vietnam “bullshit” and describing the earlier 34% tariff rate on China as “too aggressive, too soon.”
Even Trump supporter and billionaire hedge fund manager Bill Ackman has urged caution, warning of a potential “economic nuclear winter” if the administration doesn’t adjust its approach to tariffs.
The European Union has moved forward with its own retaliatory measures, voting to impose tariffs on approximately €20.9 billion worth of U.S. goods, to be implemented in three stages starting April 15. Products expected to face new duties include motorcycles, luxury boats, and orange juice.
Meanwhile, most Asian nations have opted for a more conciliatory approach. Taiwan’s President Lai Ching-te announced Taiwan “has no plans to adopt retaliatory tariffs,” instead proposing to increase purchases of American products and reduce non-tariff barriers. India, Japan, and South Korea have similarly refrained from imposing countermeasures.
Economic experts have expressed concern about the potential long-term impacts of escalating trade tensions. Goldman Sachs recently raised its U.S. recession probability to 45% from 35%, the second increase in a week. The Bank of England has warned that the reciprocal tariffs and retaliatory measures have “contributed to a material increase in the risks to global growth.”
Trump has framed the pause as an opportunity for nations to realign their trade practices with U.S. interests, while using the heightened pressure on China as leverage to force concessions. In a separate social media post following China’s announcement of increased tariffs, Trump encouraged companies to relocate to the United States, writing: “Don’t wait, do it now!”
As the 90-day negotiation period begins, countries around the world face critical decisions about how to engage with the U.S. trade demands, while markets and businesses attempt to adapt to the rapidly shifting global trade landscape.
