In a dramatic about-face, President Donald Trump on Wednesday announced a 90-day pause on newly imposed tariffs for most of America’s trade partners—while hammering China with an aggressive 125% rate. The move, which sparked a massive surge in the stock market, is now drawing sharp criticism and raising eyebrows among analysts who suspect it may be more about market theatrics than measured policy.
“Effective immediately, imports from China will face a 125% tariff,” Trump posted on Truth Social. “Their disregard for fair trade and global markets can no longer be tolerated.”
The decision came just hours after nearly 90 countries saw new U.S. tariffs take effect, part of Trump’s broader plan for “reciprocal trade.” However, the White House now says the 10% baseline tariffs for those countries are being temporarily lifted to allow room for negotiations.
Financial markets, which had been reeling from four consecutive days of losses, roared back to life. The S&P 500 soared by 7%—its biggest one-day gain in five years—prompting questions from critics about whether Trump’s tariff flip-flop was aimed at calming investor panic rather than crafting sound trade policy.
“They were getting yippy,” Trump told reporters with a grin. “People were panicking a little too early. We’re in control. Always have been.”
Treasury Secretary Scott Bessent, who had previously denied any plan to backtrack, now insists this was all part of the strategy. “President Trump was simply giving the world a wake-up call,” Bessent said at the White House. “And clearly, they picked up the phone.”
More than 75 countries have reportedly reached out to U.S. officials since last week, eager to renegotiate trade terms in light of Trump’s aggressive tariff stance.
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But not everyone is convinced. Senate Minority Leader Chuck Schumer slammed the administration’s erratic handling of trade policy, calling it “government by chaos.”
“This isn’t strategy—it’s improvisation with global consequences,” Schumer said. “He’s jerking markets around like a yo-yo and calling it leadership.”
Commerce Secretary Howard Lutnick added fuel to the speculation when he tweeted that he and Bessent sat with Trump as he handwrote the Truth Social post announcing the tariff pause. “One of the most extraordinary Truths of his presidency,” Lutnick wrote.
Meanwhile, China responded swiftly, raising its own tariffs on U.S. goods to 84%. As tensions with Beijing escalate, Trump’s administration has made it clear: the 90-day truce does not include China.
With global markets now holding their breath and allies watching closely, the world is left wondering—was this a trade reset or a high-stakes chess move aimed at rallying stocks?
For now, the tariffs are on ice—except for America’s biggest rival. And the speculation? That’s heating up fast.
