Politics
JUST IN: Markets Surge After Trump ‘Checkmates’ China With Stunning Tariff Announcement
In a surprise move Wednesday, President Donald Trump announced a 90-day pause on tariffs for more than 75 countries, while simultaneously escalating trade pressure on China by hiking tariffs to a staggering 125%. The dual-pronged policy shakeup sparked immediate reaction across global markets, with U.S. stocks surging in trading.
“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 wrote in a post on Truth Social. “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.”
At the same time, Trump said he had directed a pause on tariffs for dozens of countries who, according to him, had reached out to U.S. agencies including the Departments of Commerce, Treasury, and the USTR to avoid further escalation.
“These Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States,” Trump wrote. “I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
via Truth Social
The announcement comes amid growing volatility in the markets and mounting criticism from business leaders concerned about the impact of Trump’s trade policies. Despite a recent slide in stock values, markets responded positively to the temporary relief for U.S. trading partners.
The Dow Jones surged over 600 points shortly after the announcement, while the S&P 500 and Nasdaq both posted sharp gains.
China, meanwhile, has responded with its own set of retaliatory measures. Beijing announced an 84% tariff on U.S. imports, effective April 10, and issued fresh travel warnings to Chinese citizens considering visiting the United States.
The tit-for-tat escalation has raised new fears of a prolonged economic standoff between the world’s two largest economies.
Treasury Secretary Scott Bessent weighed in on Wednesday morning, urging Chinese officials to return to the negotiating table. “It is our strong position that fair trade must be restored,” Bessent said. “The president is leaving the door open for talks. Now it’s up to Beijing.”
“This was his strategy all along,” Bessent said, noting that Trump had always planned to scale back tariffs on dozens of countries just days after rolling them out.
“You might even say he goaded China into a bad position,” Bessent added, pointing to China’s retaliatory tariffs—which now leave them facing steeper U.S. duties while other nations get a pass.
via Truth Social
Still, Trump remained upbeat. “BE COOL! … THIS IS A GREAT TIME TO BUY!!!” he posted on Truth Social, echoing his market optimism.
Commerce Secretary Howard Lutnick took to X with high praise for President Trump’s latest message, calling it “one of the most extraordinary Truth posts of his Presidency.”
Lutnick revealed that he and Bessent were by Trump’s side as he composed the statement. “The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction,” Lutnick wrote.
With the 2025 campaign heating up and global markets reacting by the hour, Trump’s bold maneuver signals he’s willing to gamble big on trade — especially with China — while offering a temporary lifeline to America’s allies.
