Donald Trump Announces 90-Day Tariff Pause For Non-Retaliating Trade Partners

US President Donald Trump on Wednesday announced a 90-day pause on tariffs for over 75 countries, who have so far not retaliated to the reciprocal levies announced by him last week.

The reprieve is likely to benefit India, as it is among the countries which have so far not retaliated against the sharp levies imposed on imports by the United States.

Trump, in a post on his social media platform Truth Social, said during this period of interim reprieve, his administration will levy an import tariff of 10%. This is significantly lower as compared to the tariffs in the range of 25-50% announced by on several economies, particularly those in south and east Asia, last week.

"Based on the fact that more than 75 countries have called Representatives of the United States...to negotiate a solution...and that these countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately (sic)," Trump posted on Truth Social.

Even as Trump offered temporary relief to more than 75 trading partners, he has hardened his approach against China -- the economic arch-rival which has already been slapped with 104% tariffs by the US. Trump has now raised the tariff on Chinese imports to a massive 125%.

"Based on the lack of respect that China has shown to the world's markets, I am hereby raising the tariff charged to China by the United States of America to 125%, effective immediately," Trump said.

At some point, hopefully in the near future, China will "realise that the days of ripping off" the United States and other countries is "no longer sustainable or acceptable", he added.

The US equity markets sharply rebounded as Trump authorised the 90-day pause on tariffs. Nasdaq 100 soared by more than 10%, marking its biggest single-day gain since 2008.

The Dow Jones Industrial Average marked its biggest jump since 2020, rising by 2,423 points, or 6.4%. The S&P 500 also zoomed by 7.6%, marking its sharpest single-day climb in about five years.