Donald Trump Pauses Trade War with 90-Day Tariff Hold, Increases China Tariffs to 125%

Donald Trump just took a sharp turn in his global trade war strategy—and it’s got everybody talking. Just a week after setting off alarms with his aggressive tariff rollout, Trump made a sudden U-turn and announced a 90-day pause on new tariffs for most countries, excluding China.

In a social media post that felt more like a warning shot than a peace offering, he told America to “BE COOL” while markets scrambled to digest the flip.

This move comes as countries like Germany, Brazil, and India pushed back hard, and financial markets began to wobble under the pressure. But Trump didn’t back down from China—he turned it up.

He raised tariffs on all Chinese goods to 125%, accusing Beijing of showing “a lack of respect to the World’s Markets.”

This move didn’t just send a message—it shook the streets of Wall Street, Tokyo, and Shanghai. Investors, already on edge, saw wild swings in stock prices as global economies tried to figure out what’s next.

Beijing Responds: Tariff Retaliation Hits 84%

China wasn’t about to sit still. Hours after Trump’s announcement, Beijing clapped back with tariff hikes of their own, pushing their total response to 84% on U.S. goods.

This wasn’t just a game of tit-for-tat—it was a declaration. With U.S. tariffs on Chinese imports already at 104% before the increase, both sides are clearly digging in.

“When you punch at the United States of America, President Trump is going to punch back harder,” said White House Press Secretary Karoline Leavitt, standing outside the West Wing.

Trump’s latest play has some folks wondering if he’s walking things back—or doubling down. Either way, the global market is reacting in real time, and not everybody’s thrilled.

Markets Bounce Back as Trump’s Strategy Shifts

After days of red on the board, the stock market finally saw some green thanks to Trump’s tariff pause. Wall Street liked the idea of a break—at least temporarily—and traders seemed hopeful that this means cooler heads might prevail.

Treasury Secretary Scott Bessent, standing shoulder-to-shoulder with Leavitt, gave more details. He laid out plans for new trade talks with leaders from Japan, Vietnam, and South Korea this week.

“Every country in the world who wants to come and negotiate, we are going to hear you,” Bessent told the press.

Still, Bessent made it clear: Trump isn’t backing down. Instead, he’s using this pause to “create maximum negotiating leverage,” with more than 75 countries reaching out to avoid getting hit with future tariffs.

Global Pressure Mounts, Allies Tread Lightly

While some countries got a 90-day breather, the message was loud: Talk to us or risk the next hit. Trump’s move isn’t just about China—it’s about reshaping how America negotiates across the board.

European leaders have already hinted they’ll sit down for talks, though not without throwing a little shade at how quickly things escalated. Meanwhile, South American exporters are quietly adjusting prices to avoid getting caught in the crossfire.

Trump’s administration is calling this a win. Critics say it’s chaos dressed as strategy. But no matter how you frame it, one thing is clear—this trade war pause is only temporary, and it’s far from over.