Markets swung sharply on Wednesday after U.S. President Donald Trump announced a 90-day pause on parts of his tariff plan while simultaneously enforcing a 125% tariff on Chinese imports, effective immediately.
U.S. Treasury Secretary Scott Bessent said the pause gives the White House “time to negotiate.” Speaking to reporters in Washington, he added, “We are expecting countries to come to us with their best deal.”
Bessent confirmed that Mexico and Canada would be included in the broader 10% tariff regime. He emphasized that countries which did not retaliate “will be rewarded.”
A White House spokesman said China had been subjected to the higher 125% tariff rate because it “imprudently” decided to launch its own tariffs on U.S. goods in response to earlier trade measures.
“This was Trump’s intention all along,” Bessent stated, noting that Japan is expected to send a negotiating team to Washington in the coming days to work toward a bilateral trade agreement.
The announcement triggered volatility on Wall Street. The Dow Jones initially jumped on news of the temporary pause, but reversed gains as the implications of the new tariff on China became clearer. Investors are watching closely for reactions from affected countries.
The Chinese government has not issued a formal response, though diplomatic sources suggest high-level discussions are underway in Beijing.
Further updates are expected as trade negotiations unfold in the coming weeks.
Also Read: Trump’s 104% Tariffs on China: What They Mean for the U.S.
