Stock markets rally as Trump announces 90-day pause on all tariffs above 10% – but hits China with higher 125% rate

Donald Trump has announced a 90-day pause on all tariffs above 10% but targeted China with a staggering 125% rate as the trade war between Washington and Beijing rages on.

President Trump took to social media on Wednesday night to announce that all countries except China will now only face 10% tariffs – marking a huge change in White House policy.

Stock markets rallied as the news came in that only China would be facing levies higher than 10%.

Sharing a statement on Truth Social, the president said: “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 realise that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.

“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorised a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”

Following this massive U-turn, the UK remains in the same position, facing 10% tariffs on all US imports.But countries like Israel, Canada and trading blocks like the EU have seen their levies slashed to that base rate of 10%.