Trump Slashes Tariffs to 10% for Most Nations, Hikes China Duties to 125% Amid Global Trade Shake-Up

Washington, D.C. — President Donald Trump on Wednesday announced a 90-day reduction in tariffs on imports from the majority of America’s trading partners, slashing the rate to a uniform 10% as a gesture to open the door for new trade negotiations.

At the same time, Trump dramatically increased tariffs on Chinese imports, raising the rate to 125%, which he said was in response to China's “lack of respect” toward global trade systems.

“China has taken advantage of the world for far too long. This ends now,” Trump declared in a Truth Social post on Wednesday afternoon.

This aggressive move comes on the heels of a broader tariff regime that went into effect earlier in the day, affecting goods from nearly 90 countries. That set of so-called “reciprocal tariffs” ranged between 11% and 50%, depending on each nation’s existing trade dynamics with the United States.

China Retaliates, Markets React

In a tit-for-tat response, China announced an increase in its tariffs on American imports, setting its new rate at 84%.

Despite growing trade tensions, financial markets responded positively to the news of the 90-day pause. Investors saw the temporary tariff cut as a sign of potential resolution on the horizon. The S&P 500 surged by 7%, reversing four consecutive days of losses and marking its largest single-day gain in five years.

“They were getting yippy, they were getting afraid,” Trump told reporters later at the White House, implying that market fears had driven his decision to ease pressure temporarily.

Inside the White House: A Calculated Shift or a U-turn?

Treasury Secretary Scott Bessent defended the administration’s sudden shift, saying it was a part of Trump’s original plan all along.

“This was always the president’s strategy — pressure first, then pause for dialogue,” Bessent told journalists.

Commerce Secretary Howard Lutnick echoed the sentiment, revealing that he and Bessent were present when Trump drafted the message on Truth Social.

“It was one of the most extraordinary presidential statements I’ve ever witnessed,” Lutnick posted on X.

Political Fallout and Democratic Pushback

Democratic leaders were quick to criticize the administration’s approach, describing it as inconsistent and destabilizing.

“President Trump is clearly feeling the pressure — and for good reason,” said Senate Minority Leader Chuck Schumer (D-NY). “This is what government by chaos looks like — indecision, internal infighting, and a total disregard for long-term economic planning.”

Schumer warned that such unpredictable policy shifts could weaken international confidence in the United States and harm American businesses already struggling with global supply chain issues.

A Turning Point in Global Trade Relations

Last week, Trump unveiled a sweeping plan to restructure U.S. trade policy, introducing a 10% baseline tariff for more than 180 countries and tougher rates for nearly 90. These “reciprocal tariffs,” he said, were aimed at forcing other countries to match the trade openness America had long offered.

On April 2, during an event at the White House Rose Garden dubbed “Liberation Day”, Trump signaled the start of what he called a fairer trade era. He presented a chart showing how the U.S. was, in his words, “correcting decades of global imbalance.”

Now, with a temporary window open for negotiations — excluding China — the White House says it is prepared to hear proposals from countries that want to avoid long-term tariff hikes.

What’s Next?

The coming weeks are expected to be filled with diplomatic activity as dozens of countries push for exemptions or trade revisions. Meanwhile, tensions with China are likely to intensify, with both sides now engaged in a high-stakes standoff that could have long-term consequences for global markets.