Trump Pauses Tariffs on Most Nations for 90 Days, Hikes China Tariffs to 125% Amid Market Turmoil

Amidst global market volatility, President Donald Trump announced on April 9, 2025, a 90-day suspension of tariffs for approximately 60 countries that have engaged constructively with the U.S. government. However, tariffs on Chinese imports will increase from 104% to 125%. Trump stated the decision followed discussions with advisors, including Treasury Secretary Scott Bessent, and signaled a willingness to meet with Xi Jinping. He cited a 'lack of respect' from China as the reason for the increased tariffs, while noting that other countries had reached out for trade talks rather than retaliating. The move appears to narrow the trade war focus to a showdown between the U.S. and China, as the President recommitted to a baseline tariff of at least 10% on nearly all U.S. imports. The S&P 500 experienced a surge following the announcement. Negotiations with multiple countries are expected to cover a broad range of trade-related issues during the 90-day pause.