Trump Offers 90-Day Tariff Relief to Allies, Imposes Harsh 125% Tariffs on China

In a dramatic shift in U.S. trade policy, former President Donald Trump declared a 90-day pause on certain tariffs while simultaneously ramping up tariffs on Chinese imports to an unprecedented 125%, effective immediately. The announcement, made Wednesday via Trump’s Truth Social platform, marks another escalation in the former president’s long-standing trade battle with China.

While details remain unclear on how the tariff pause will be administered, Trump stated, “I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” The ambiguous statement triggered sharp movements in global financial markets, which have recently experienced volatile fluctuations driven by geopolitical and trade-related uncertainties.

In a subsequent White House briefing, Treasury Secretary Scott Bessent offered clarification, emphasizing that the 10% reduced tariffs will apply broadly to most allied nations during the 90-day window. Bessent attributed the move to an overwhelming number of responses from international allies eager to engage in new trade negotiations.

“The president has chosen to pause tariffs not as a retreat, but as a way to create space for meaningful bilateral discussions,” Bessent said. “Each country’s case will be reviewed individually. President Trump intends to personally oversee these negotiations to ensure fairness and reciprocity.”

He dismissed suggestions that recent economic pressures or stock market fluctuations influenced the decision. “This isn’t about market nerves,” Bessent insisted. “It’s about strategy and securing long-term gains.”

However, tensions with China are only intensifying. Trump accused Beijing of showing “a lack of respect to the World’s Markets” and signaled that the U.S. would no longer tolerate what he characterized as “unfair trade practices.”

“The tariffs charged to China are now at 125%, effective immediately,” Trump declared in a follow-up post. “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.”

Trade experts say the move could have sweeping implications for global supply chains, inflation, and diplomatic relations. According to the Peterson Institute for International Economics, a tariff of this magnitude could lead to price hikes in consumer electronics, automotive parts, and various essential goods heavily sourced from China.

While the tariff pause opens a narrow window for renegotiation with allies, the aggressive stance toward China signals a renewed focus on hardline trade enforcement—a hallmark of Trump’s America First policy.

Analysts are closely watching how China and other global powers respond in the coming weeks, as the world braces for a possible reconfiguration of economic alliances and a more fragmented global trade landscape.