WASHINGTON — Under mounting pressure from turbulent financial markets and concerned economic advisors, President Donald Trump announced a temporary pause on new tariffs for most U.S. trading partners — a significant shift in tone amid an escalating global trade conflict.
The administration’s move marks a 90-day halt on tariff increases for countries other than China, which now faces an elevated 125% import tax. While some officials suggested the pause had always been part of a broader strategy, the sudden shift appeared closely tied to intense market reactions and fears of a looming recession.
Markets Rebound on Tariff News
2:00 p.m. ET — Investor confidence soared following the president’s announcement. The S&P 500 jumped 7.8%, reversing early losses. The Dow Jones Industrial Average climbed 2,476 points (6.6%), while the Nasdaq composite surged by 9%. The rally followed a Truth Social post from Trump, which many investors had been anticipating.
Treasury Clarifies Policy Direction
1:50 p.m. ET — Treasury Secretary Scott Bessent confirmed that the administration would suspend its so-called “reciprocal tariffs” for most major allies. However, a 10% base tariff remains on nearly all global imports, and tariffs on Chinese goods have been hiked sharply. Bessent said China’s rate would rise to 125%.
China Remains Isolated in Trade War
1:30 p.m. ET — In a social media post, Trump stated:
“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other countries, is no longer sustainable or acceptable.”
The post sent markets higher, with the Dow rising 1,800 points in minutes. Details of the tariff relief for other nations remained unclear.
Focus Shifts to Deregulation
12:55 p.m. ET — As the administration manages economic fallout from recent trade measures, President Trump is expected to sign a series of executive orders aimed at deregulation. According to a senior White House official, the initiative will target business restrictions across multiple sectors in an effort to stimulate domestic growth.
Stock Market Volatility Continues
12:30 p.m. ET — Despite the announcement, markets remained volatile. The Dow pared earlier gains, up under 100 points after rising nearly 200 at the open. The S&P 500 rose 0.5%, while the Nasdaq Composite climbed 1.3%. The tech-heavy index recently entered bear market territory.
EU Responds with Retaliatory Tariffs
10:55 a.m. ET — The European Union approved a new round of tariffs on $23 billion in U.S. goods, in response to Trump’s steel and aluminum duties. The levies will roll out in phases, starting April 15. European Commission President Ursula von der Leyen reiterated the EU’s willingness to pursue a zero-tariff agreement on industrial goods, but Trump dismissed the proposal as inadequate.
Trump Urges Calm, Confidence
9:33 a.m. ET — The president took to Truth Social with a pair of upbeat messages:
“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”
“THIS IS A GREAT TIME TO BUY!!! DJT”
Delta Pulls Guidance Amid Economic Uncertainty
9:00 a.m. ET — Delta Air Lines withdrew its full-year 2025 guidance, citing economic unpredictability stemming from the trade war. CEO Ed Bastian noted a sharp decline in growth, saying the airline will limit capacity expansion and manage costs conservatively through year-end.
“With broad economic uncertainty around global trade, growth has largely stalled,” Bastian stated.
Japan Seeks Global Market Stability
8:00 a.m. ET — Top Japanese financial officials held emergency meetings to discuss strategies for stabilizing global markets. Finance Ministry official Atsushi Mimura said Japan remains committed to financial stability, though did not reference Trump by name. The move comes amid sharp declines in Asian markets in response to U.S. tariff policy.
China Doubles Down with New Tariffs, Strong Rhetoric
7:15 a.m. ET — China announced an 84% tariff on all U.S. goods, a sharp increase from last week’s 34%.
6:15 a.m. ET — In a forceful white paper, China reiterated its commitment to “fight to the end” against U.S. tariffs. The Ministry of Commerce argued that overall trade remains balanced when factoring in services and American companies operating in China. The government criticized the U.S. for failing to uphold promises from the earlier phase-one trade agreement and declined to confirm whether negotiations with Washington would resume.
Summary: What Took Effect Wednesday
Dubbed “Liberation Day” by the White House, Wednesday marked the start of President Trump’s most comprehensive tariff strategy to date. A 10% minimum tariff was placed on nearly all imports, with higher rates for nations running trade surpluses with the U.S.
Key tariffs include:
- 50% on small economies like Lesotho
- 47% on Madagascar
- 46% on Vietnam
- 32% on Taiwan
- 25% on South Korea
- 24% on Japan
- 20% on the European Union
Meanwhile, China faces a compounded total tariff rate of 104%, factoring in the latest hike and earlier penalties. Economists warn that these sweeping measures will likely raise consumer prices and strain global supply chains — risks that could deepen if retaliation continues.
