Trump Freezes Most Tariffs for 90 Days—China Excluded Amid Escalating Trade Tensions

In a dramatic shift in U.S. trade policy, President Donald Trump announced a 90-day suspension of most import tariffs—except for those targeting China. The decision, shared via a post on Truth Social, comes amid escalating tensions with Beijing and mounting concerns over economic stability.

Trump declared a sharp hike in tariffs on Chinese imports, raising the rate to 125%, citing the Asian giant’s “lack of respect” for global markets. In contrast, other trading partners will benefit from a temporary rollback to a flat 10% tariff, as part of what the president called a “substantially lowered Reciprocal Tariff.”

“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” Trump wrote.

The markets responded with enthusiasm. The Dow Jones Industrial Average soared by over 2,700 points by mid-afternoon, reversing a near bear-market trajectory that had rattled investors in recent days.

Treasury Secretary Scott Bessent characterized the announcement as a long-planned move by Trump, emphasizing the strategic timing:

“It took great courage – great courage – to stay the course until this moment,” Bessent said. “No one creates leverage for himself like President Trump.”

Reactions from the financial world were overwhelmingly positive. Gina Bolvin, president of Bolvin Wealth Management Group, said the pause brings "much-needed clarity" as earnings season begins.

“This pause may provide companies with a clearer backdrop for their guidance,” she added.

However, not everyone was on board. Capitol Hill Republicans and prominent business leaders had voiced deep concerns about the tariff escalation in recent days. Elon Musk labeled senior trade adviser Peter Navarro a “moron” on social media, while Senators Rand Paul and Ted Cruz expressed their opposition.

Major corporations also voiced unease. Delta Airlines cited “stalled growth,” while Walmart warned of an uncertain outlook. Even JPMorgan Chase CEO Jamie Dimon predicted a U.S. recession if trade policies continued to destabilize global commerce.

The Federal Reserve's latest meeting minutes reflected heightened concern, warning that sustained uncertainty could hamper consumer spending and business investment while fanning inflation.

“Participants generally saw increased downside risks to employment and economic growth,” the Fed reported, citing the tariff-driven uncertainty.

With U.S. Treasury yields climbing above 4%, the administration’s ability to manage debt and finalize budget deals—especially extensions of the 2017 tax cuts—faces added pressure.

The sudden about-face follows growing political tension and slipping public support. A recent Economist/YouGov poll showed a drop in Trump’s approval rating, with 51% disapproving of his performance just days after the tariffs took effect.