In a significant turn of events, President Donald Trump announced on Wednesday a reduction in tariff rates for imports from most trading partners to 10% over the next 90 days. This move is designed to facilitate ongoing trade negotiations with these nations.
This announcement came shortly after the implementation of heightened tariffs on goods from around 90 countries, part of a broader strategy known as reciprocal tariffs from the United States.
Additionally, Trump declared an increase in tariffs on imports from China, elevating them to 125%, effective immediately. He attributed this escalation to what he described as China’s disrespect toward global markets.
Following Trump’s announcement, China, the U.S.’s third-largest trading partner, responded by raising its own tariff rate on imports from the U.S. to 84%.
According to Trump, more than 75 countries have reached out to U.S. officials seeking negotiations after his recent tariff announcements.
The stock market reacted positively to Trump’s latest statement, with indices rebounding sharply and the S&P 500 index experiencing a remarkable 7% increase, marking its largest single-day gain in five years.
When pressed on the rationale behind his decision, Trump explained to reporters, “I thought that people were jumping a little bit out of line.” He added, “They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid,” in comments made from the White House.
Supporting the president’s claims, Treasury Secretary Scott Bessett stated that Trump always intended to pause the broad tariffs previously announced. “This was his strategy all along,” Bessent affirmed, despite officials having downplayed the idea of suspending tariffs in recent days.
Earlier on April 2, Trump had introduced a baseline tariff rate of 10% applicable to imports from over 180 countries. The enhanced tariffs for a select group of 90 countries took effect on Wednesday and varied from 11% to 50%.
Markets have exhibited volatility since Trump’s initial tariff plan was introduced, with U.S. stock exchanges grappling with four consecutive days of losses leading up to Wednesday.
Senate Minority Leader Chuck Schumer criticized the president, asserting that Trump is feeling mounting pressure from Democrats and the American public regarding the negative implications of the tariffs. “He is reeling, he is retreating, and that is a good thing,” Schumer stated, adding, “This is government by chaos.” He criticized the administration for its unpredictability and internal discord.
In a tweet, Commerce Secretary Howard Lutnick remarked that he and Treasury Secretary Bessent were present with Trump as he composed his announcement on Truth Social, labeling it as “one of the most extraordinary Truth posts of his Presidency.” He expressed optimism that the world is prepared to collaborate with Trump on global trade matters, while also asserting that China has opted for a contrasting approach.
Here is Trump’s complete announcement on Truth Social:
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. 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.
Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!
