President Donald Trump has once again shaken up global trade dynamics with a bold two-part move: a 125% tariff on Chinese imports and a 90-day pause on tariffs for dozens of other countries that reached out to negotiate in good faith.
The announcement, made Wednesday on Truth Social and confirmed during a White House press conference, follows days of speculation and a sudden shift in market sentiment.
Trump cited China’s “lack of respect” toward global markets as the primary reason for the sharp tariff increase, while noting that more than 75 other countries had contacted U.S. officials to discuss fair trade deals — prompting him to temporarily lower tariffs for them to 10% during this negotiation window.
“China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” Trump wrote. “I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately.”
The policy pause — which excludes China, Mexico, Canada, and a few specific products like vehicles — is set to last until July 8. According to Trump, it gives his administration time to strike “tailor-made” trade deals that benefit American workers and industries.
Markets Soar After Trump’s “Trap” on China
The economic response was immediate. The Dow Jones Industrial Average skyrocketed more than 2,500 points — a 7.8% gain — on Wednesday. The S&P 500 surged 9.5%, while the Nasdaq jumped over 12%. European and Asian markets followed suit, with Germany’s DAX up 8%, France’s CAC 40 rising 6.3%, and Japan’s Nikkei 225 gaining 7%.
Trump appeared confident about the market response, telling Sen. John Barrasso (R-WY) on a hot mic, “It’s up almost 7 points, 2,500 points, nobody has ever heard of it. It’s gotta be a record.” Later, he addressed reporters, saying the pause came after “people were getting a little bit yippy” and the bond market showed signs of instability.
Treasury Secretary Scott Bessent, commenting on the pause, said this was Trump’s “strategy all along.”
“You might even say that he goaded China into a bad position,” Bessent said.
The administration had previously insisted there would be no delay in the global tariff rollout. But according to insiders, the pivot came directly from Trump — not from any advisor.
As Trump raised China’s tariff from 104% to 125%, critics in Beijing responded with mirrored tariffs, escalating the tension. But while China doubled down, most other countries chose dialogue.
Trump praised those efforts and emphasized that nations who refrained from retaliation would be treated with respect and fairness.
“More than 75 countries” had contacted U.S. agencies like the Treasury, Commerce Department, and U.S. Trade Representative’s office to negotiate, according to Trump’s post.
Still, not everyone was pleased. Some Democrats have accused the president of manipulating the markets for political gain.
Senator Elizabeth Warren called for an investigation, suggesting Trump’s timing may have unfairly benefited certain investors. Representative Mike Levin added, “This is market manipulation to help his base profit.”
But Trump’s supporters and many online voices praised the move as a clear-headed and tactical victory.
Reacting to Bessent’s comments, The Vigilant Fox, a US journalist, praised Trump’s move on X: “Scott Bessent says Trump didn’t just raise tariffs—he set a trap, and China walked right into it.” Dan Scavino Jr. said, “THE ART OF THE DEAL.”
As global leaders scramble to react, Trump remains confident that the United States is now in a position of strength.
“A deal is going to be made with China,” he said. “A deal is going to be made with every one of them.”