President Donald Trump has announced a sweeping 90-day pause on most U.S. tariffs, offering relief to more than 75 countries that are actively engaging in trade talks with the United States. At the same time, he is doubling down on pressure against China, hiking tariffs on Chinese goods to a staggering 125%—a clear message that the era of one-sided trade is over.
The temporary pause reduces the general tariff rate to 10% for nations participating in good-faith negotiations with the U.S., giving allies and trading partners a window to secure long-term, fairer trade agreements. But for China, which the administration says continues to act in bad faith, Trump is taking the gloves off.
“They don’t respect us, they’ve taken advantage of us, and now they’ll pay for it,” Trump said. “This is what real trade enforcement looks like.”
The tariff increase on China follows Beijing’s recent decision to slap an 84% tariff on American goods, a move that triggered swift condemnation from U.S. officials and prompted Trump’s latest escalation. The 125% tariff represents one of the most aggressive trade moves in modern history and reflects the administration’s commitment to using every tool available to force change in China’s predatory trade behavior.
Markets rallied hard on the news. The Dow Jones Industrial Average shot up more than 2,200 points—the largest single-day gain since 2020—while the S&P 500 and Nasdaq also surged. Investors appear encouraged by the prospect of new trade deals and the strong stance against China’s economic aggression.
Still, the bond market signaled caution, with yields on 10-year Treasury notes climbing to 4.4%. Analysts suggest investors are weighing the risk of inflation and long-term volatility if trade conflicts continue.
The international reaction has been mixed. European leaders are urging China to avoid further escalation, while countries benefiting from the tariff pause are preparing to accelerate negotiations. Many view the 90-day window as a crucial opportunity to secure improved access to the U.S. market—on terms that are finally fair.
Trump’s strategy remains clear: use America’s unmatched economic leverage to rewrite the rules of global trade in favor of U.S. workers and industries. The message to foreign governments is simple—negotiate fair deals now, or face even steeper consequences.
As the world watches how China responds and how negotiations with other nations unfold, President Trump’s approach is once again putting America in the driver’s seat. The days of appeasement are over. It’s America First, and the world is being forced to catch up.