# Trump raises China tariffs to 125% and gives most other countries a 90-day pause
Markets surged after the White House softened its stance, though Canada and Mexico were left out of the reprieve.
By NeoTechNews Desk
Donald Trump said he was raising tariffs on Chinese imports to 125% effective immediately while also putting a 90-day pause on higher tariffs for most other countries. The president announced the change on Truth Social after days of market turmoil and policy whiplash, and later told reporters he was open to speaking with Chinese President Xi Jinping. The move produced an immediate market reaction, with shares and risk assets surging after the White House signaled that it would not press ahead with the broader tariff shock for now.
The pause is not universal. BBC reporting said the 90-day reprieve applies to most countries, but not to China, Canada or Mexico. For those countries, the earlier tariffs remain in place. The European Union, despite voting for retaliatory tariffs against the United States, was placed in the same 10% baseline category as other regions. That means the administration has split its tariff strategy into a broad but temporary global baseline and a much harder line on China, where the trade war is now being escalated instead of deferred.
Trump described the new 125% China rate as part of a tough but negotiable stance. He told reporters in the Oval Office that Xi Jinping was "a smart guy" and that a deal would likely be reached eventually. The president also said he would consider meeting with Xi, suggesting that the tariff hike is being paired with an open door to talks. In the BBC live coverage, Trump said the two sides would get a phone call "at some point" and that negotiations would then be "off to the races." That is classic Trump-style bargaining language, but the practical effect is still a major escalation in trade pressure on China.
The market response showed how sensitive investors remain to each tariff announcement. BBC said markets were soaring after the reprieve, and the live page also noted that U.S. Treasury yields had risen sharply earlier in the day, with investors questioning the safety of U.S. debt amid escalating trade tensions. Trump brushed off bond-market volatility, describing it as "beautiful" and denying a direct link between the sell-off and tariff policy. Analysts quoted in the coverage warned that the combination of tariff shocks and market nerves could keep inflationary pressure and borrowing costs elevated.
The White House said the pause would give it room to negotiate fairer trade terms with countries that did not retaliate against U.S. tariffs. Trump said more than 75 countries had already been in touch looking for deals, which means the administration has an enormous negotiating burden over the next three months. For now, the message is mixed but clear: most of the world gets a temporary pause and a 10% levy, while China is being pushed into a much more confrontational phase of the tariff fight.
