Why Trump gave a tariff reprieve to the World — But not China

US President announces temporary relief for over 75 countries amid trade war concerns

In a surprising policy shift, US President Donald Trump on Wednesday declared a 90-day suspension of broad tariffs on all countries except China. The announcement marked a sudden departure from his earlier aggressive trade stance and followed days of mounting pressure from business leaders and political allies.

Trump stated that more than 75 countries had engaged in negotiations without retaliating against his tariff regime, prompting the temporary pause. During the 90-day period, these countries will face a significantly reduced reciprocal tariff of just 10 percent.

China faces steep hike in tariffs

While most nations received a temporary reprieve, China faced a severe escalation. Trump announced an immediate increase in tariffs on Chinese imports to 125 percent, up from the previously set 104 percent.

“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China… to 125%, effective immediately,” Trump wrote on Truth Social.

He added, “At some point… China will realize that the days of ripping off the U.S. and other countries is no longer sustainable or acceptable.”

Internal economic concerns prompted policy shift

Despite earlier resistance to halting the tariffs, sources indicate that escalating concerns within the US Treasury Department over a bond market selloff played a critical role in Trump’s decision. Treasury Secretary Scott Bessent reportedly raised red flags about the financial implications, which were then reinforced by White House economic officials.

Trump, in his public remarks, described the move as heartfelt rather than pre-planned:

“It was written from the heart, and I think it was well written too… You have to be flexible,” he said, referencing the bond market volatility.

Wall Street responds with massive rally

Markets reacted swiftly to the announcement. The Dow Jones Industrial Average surged by around 2,500 points, translating into nearly an 8% gain—the largest in months. The Nasdaq rose by 12.2%, marking its best single-day performance in 24 years, while the S&P 500 jumped 6.0% to close at 5,281.44 points.

Oil prices also climbed more than four percent, and the US dollar strengthened.

Positive impact for India amid ongoing trade talks

India, which had been hit by a 26% reciprocal tariff from the US, could see temporary relief in its markets. The 90-day pause allows more time for trade negotiations with Washington.

India’s Ministry of External Affairs spokesperson, Randhir Jaiswal, confirmed that discussions are progressing toward a comprehensive bilateral trade deal.

“India and the United States are strong partners in trade… and we hope to conclude this agreement expeditiously,” Jaiswal said.

For all the latest updates, download PGurus App.

The post Why Trump gave a tariff reprieve to the World — But not China appeared first on PGurus.