President Donald Trump has announced a 90-day pause on tariffs above the 10% baseline rate, offering a temporary reprieve for most US trading partners — with one notable exception: China.
In a post on Truth Social, the President confirmed the pause would take immediate effect, while also declaring a punitive 125% tariff on Chinese imports, citing a “lack of respect” for global markets and Beijing’s decision to launch retaliatory tariffs on US goods.
The UK, already subject to the baseline 10% tariff since last week’s “liberation day” trade shake-up, appears to remain unaffected by the latest move.
US Treasury Secretary Scott Bessent insisted the 90-day window is not a retreat, but a strategic move to encourage negotiations. “We are expecting countries to come to us with their best deal,” he said at a White House briefing. “Do not retaliate, and you will be rewarded.”
Countries that maintain open dialogue and refrain from countermeasures could secure more favourable treatment under Trump’s evolving tariff regime, Bessent added. He noted that Mexico and Canada remain within the 10% tariff bracket and emphasised that the pause creates an opportunity to resolve broader trade issues, including currency manipulation and non-monetary barriers.
Trump’s post explained the rationale behind the decision: “Based on the fact that more than 75 countries have called representatives of the United States to negotiate … and that these countries have not, at my strong suggestion, retaliated in any way … I have authorised a 90-day PAUSE, and a substantially lowered reciprocal tariff during this period, of 10 per cent, also effective immediately.”
The announcement triggered an immediate reaction in financial markets. The Dow Jones Industrial Average surged by 1,800 points, while the S&P 500 climbed more than 300 points in just 20 minutes.
While the tariff pause has been welcomed by markets, the 125% rate on Chinese goods underscores the increasingly confrontational tone in US-China relations. Analysts say the targeted move risks inflaming global trade tensions at a time when markets and businesses are already on edge.
For UK exporters, the news brings some relief. With the 10% baseline remaining in place, no additional duties are expected — at least for now. However, the three-month timeframe leaves the door open for further developments depending on the outcome of negotiations.
The White House has not confirmed which sectors will be prioritised during this negotiation window, but a new round of trade talks is expected to begin within days.
With the global economy closely watching, business leaders and policymakers are now assessing the implications of a tariff landscape that remains volatile — but perhaps, for now, a little less severe.
