What Trump Says On Pausing "Reciprocal" Tariff ?

Washington DC, US: US President Donald Trump announced a 90-day pause on his sweeping tariffs on all countries, except China. Instead of pausing the tariff hike, Trump increased the previous 104 percentage tariff on Beijing to 125 percentage. According to Trump, more than 75 trading partners had negotiated and not retaliated against him unlike China – which led to the pause. During the 90 days, a significantly reduced ‘reciprocal’ tariff of just 10 per cent would be in effect, he said.

Trump said he impose the hefty tariffs to address the alleged trade imbalance with the US.

“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. At some point, hopefully in the near future, China will realize that the days of ripping off the US and other countries, is no longer sustainable or acceptable,” the US President wrote on his social media platform Truth Social.

Also Read: Stocks Sinking Deep Across The Globe As Trump’s Tariff Hike Nears

“China wants to make a deal. They just don’t know how quite to go about it…President Xi Jinping is a proud man. They don’t know quite how to go about it, but they’ll figure it out,” he added.

Republicans and business executives had been pressing on Trump to stop the tariffs, fearing a trade war, which in turn would lead to a global market meltdown, and raising concerns of a looming global recession. The Republican refused to budge saying, “My policies will never change”.

However, a growing alarm inside the Treasury Department over the developments in the bond market was believed to be the only factor that made Trump hit a pause on his reciprocal tariff regime, reported CNN. As per the report, US Treasury Secretary Scott Bessent raised the concerns to Trump, while White House economic officials briefed him on the accelerating selloff in the US Treasury market.

From Trump’s addressing of the issue to reporters after the announcement, it was  believed that the decision was taken on the go, rather than extracting it by sitting on it.

“The bond market is very tricky, I was watching it. The bond market right now is beautiful. But yeah, I saw last night where people were getting a little queasy. We didn’t have access to lawyers, or it was just wrote up. We wrote it up from our hearts, right? It was written from the heart, and I think it was well written too, but it was written from the heart,” he said.

Also Read: Trump Slaps 125% Tariff On China, Temporarily Eases Trade Pressure On Others

“I thought that people were jumping a little bit out of line…They were getting yippie, you know, they were getting a little bit a little bit afraid. You have to be flexible,” he said.

After a steep fall, Wall Street stocks rocketed higher on Wednesday following Trump’s shock move to pause many new tariffs, lifting an equity market beaten down by days of losses amid rising recession worries. Within moments of the announcement, the Dow index surged ahead around 2,500 points along the way to a nearly eight-percent gain on the session. While, the tech-rich Nasdaq gained 12.2 percent to notch its best day in 24 years, and the S&P 500 surged 6.0 percent higher to 5,281.44 points, said media report. Oil prices jumped more than four percent, while the dollar also strengthened.