Why Trump Delays Tariffs For All Countries Except China?
Just 24 hours to coming into force, US President Donald Trump announced a 90-day pause on his reciprocal tariffs on all countries, except China. According to the US President, over 75 countries had negotiated against him which led to pause the recently announced tariffs. During the 90-day pause period, only the base tariffs of 10 percent will be in force.
Reportedly, Republicans and business executives were insisting Trump to stop the tariffs, considering the prospects of global recession and market meltdown due to fear of major trade war. However, Trump showed no signs of retracting the tariffs.
Read also: Stocks Sinking Deep Across The Globe As Trump’s Tariff Hike Nears
Meanwhile, the US Treasury Department concerned over the bond market developments, which may have changed President’s mind, CNN reported. As per the reports the US Treasury Secretary Scott Bessent raised concerns and White House economic officials briefed him on the rising sell off in the market.
Both US and Global markets were reportedly at the verge of a freefall. According to Asian Development Bank (ADB), the full implementation of US tariffs could have cut developing Asia’s growth by about a third of a percentage point this year and nearly a full percentage point in 2026.
Announcing his decision the US President said, “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?”.
The Wall Street stocks rocketed higher following Trump’s shock move to pause many new tariffs lifting the equity market again. 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.
However, Trump announced an immediate increment of 125 percent tariffs on China, up against the previously declared 104 percent.
Read also: Trump Slaps 125% Tariff On China, Temporarily Eases Trade Pressure On Others
“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,” Trump said about China.
“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,” the US President said.
