President Donald Trump has officially paused most U.S. tariffs for 90 days in a bold move aimed at accelerating trade negotiations with dozens of nations—while doubling down on China, raising tariffs on Chinese imports to a crushing 125%.
Speaking from the White House, Trump struck a confident tone as he outlined the strategy behind the new tariff policy. “A deal is going to be made with China. A deal is going to be made with every one of them—and they’ll be fair deals. I just want fair,” he said.
Under the 90-day pause, over 75 countries actively engaging in trade talks with the U.S. will see tariffs drop to a baseline 10%. The goal, according to the administration, is to give good-faith trading partners room to negotiate while keeping America’s leverage intact. China, however, is not being offered that courtesy.
The decision to slam China with a 125% tariff comes after Beijing’s retaliatory 84% tariff on U.S. goods and what the administration described as a consistent “lack of respect” in trade negotiations. Trump made it clear that the days of America getting the short end of the deal are over.
Markets reacted with a historic surge. The S&P 500 jumped 9.5%, the Dow climbed nearly 8% to over 40,600, and the Nasdaq spiked 12.2%—one of its best days on record. The rebound reflects renewed investor confidence that Trump’s aggressive trade strategy could ultimately deliver economic wins without prolonged uncertainty.
Treasury Secretary Scott Bessent praised the move as a masterstroke of negotiation. “This strategy has brought more than 75 countries to the table,” he said. “We’re going to make smart, fair, and individualized trade deals that benefit the American people.”
Commerce Secretary Howard Lutnick echoed that sentiment, calling the tariff reset “a vital step in correcting global trade imbalances that have hurt U.S. workers for far too long.”
Despite the widespread relief for most U.S. trading partners, not everyone responded favorably. The European Union announced retaliatory tariffs in response to earlier U.S. steel and aluminum duties, highlighting the ongoing challenges in hammering out new trade arrangements even with allies.
Still, the overall trajectory is clear: under President Trump’s “America First” economic agenda, the United States is reclaiming its position as a dominant force in global trade. Nations willing to negotiate fair terms are being welcomed to the table. Those that cheat or retaliate will face the full weight of American economic power.
As Trump put it, “We’re not looking for handouts. We’re looking for fairness. And we’re finally getting it.”