Washington, (EFE) – United States President Donald Trump announced Wednesday a 90-day suspension of reciprocal tariffs for countries that have not retaliated against his latest trade measures and have instead sought a negotiated solution.
“I’ve authorized a 90-day PAUSE and a substantial reduction in tariffs during this period, down to 10%, also with immediate effect,” Trump said on Truth Social.
Trump claimed that more than 75 countries have approached the US seeking to resolve trade tensions diplomatically. In a speech to the Republican committee, he boasted: “These countries are calling us. They’re kissing my ass. They’re desperate to make a deal.”
However, Trump made it clear that this pause does not apply to all.
The White House, right before, simultaneously increased tariffs on China to 125%, citing “disrespect” from Beijing following its retaliatory tariffs.
Wall Street soars on tariff pause
The financial markets reacted swiftly to the announcement. Within minutes, the Nasdaq surged 8.69%, the S&P 500 climbed 7.10% and the Dow Jones rose 6.33%, marking one of the strongest rallies in five years.
Tech stocks led the gains with a 9% jump, followed by non-essential goods, industrials, and basic materials, all sectors heavily hit by tariffs in the last weeks.
“The world is ready to work with President Trump to fix international trade, and China has chosen the opposite direction,” US Commerce Secretary Howard Lutnick posted on X (formerly Twitter).
Elsewhere, US 10-year Treasury yields, which had briefly spiked to 5.02% moderated to 4.36%. Oil prices rebounded 2%, topping 60 dollars a barrel again, while gold rose 3% to 3,079 dollars an ounce. Bitcoin advanced 6%, nearing 81,400 dollars.
China hit with new tariff hike
Just hours after the market rally, Trump doubled down on China, increasing tariffs from 104% to 125% on Chinese imports “with immediate effect.”
“Hopefully, someday soon, China will realize that the era of cheating the US and other countries is over,” Trump posted.
The tariff escalation came as the second wave of reciprocal tariffs, announced on Apr. 2, officially took effect.
China responded by enforcing its own 104% tariff level against US goods and vowed to retaliate further if Washington continues on this path.
Beijing accused Washington at the World Trade Organization (WTO) of violating international trade rules and undermining the multilateral trade system.
White House spokesperson Karoline Leavitt defended the move, stating, “As the president has said before: when someone hits the United States, President Trump hits back harder.”
WTO warns of global fallout
In Geneva, WTO Director-General Ngozi Okonjo-Iweala warned that the escalating US-China trade tensions could shrink bilateral trade by up to 80% and slash global real GDP by 7%.
“Our preliminary projections suggest that goods trade between these two economies could fall by as much as 80%,” she said.
The WTO chief stressed that the confrontation could have “much broader implications,” especially for developing nations, and could lead to long-term fragmentation of the global economy along geopolitical lines.
Okonjo-Iweala urged WTO to respond through cooperation and dialogue: “Trade diversion represents an immediate and urgent threat that requires a coordinated global response.” EFE
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