Trump Tariffs Impact Live Updates: China has been excluded from the pause, and instead, the tariff rate has been increased to 125%.
In a move that sent shockwaves through global markets, U.S. President Donald Trump announced a 90-day pause on tariffs for most trading partners—but excluded China, instead raising tariffs on Chinese goods to a staggering 125%. The decision, which comes amid fierce international pushback, has further escalated tensions between the world’s two largest economies while providing temporary relief to other nations.
Asian markets surged in early trading Thursday following the announcement, with Japan’s Nikkei 225 skyrocketing 8%, South Korea’s Kospi jumping 5%, and Australia’s ASX 200 climbing 5%. Meanwhile, U.S. stocks staged a dramatic rebound Wednesday, with the Dow Jones Industrial Average soaring 7.87%, the Nasdaq Composite rocketing 12.16%, and the S&P 500 surging 9.53%—one of the largest single-day rallies in history.
A Strategic Pause—But Not for China
President Trump’s decision to suspend tariffs for 90 days for most nations was seen as an attempt to ease mounting pressure from allies and corporate America, both of which have warned of severe economic consequences from prolonged trade conflicts. However, China was conspicuously excluded from the reprieve, with the White House instead raising tariffs on $300 billion worth of Chinese imports to 125%, up from the previous 100%.
“We cannot allow China to continue exploiting American workers and stealing our intellectual property,” Trump said in a press briefing. “They’ve had decades of unfair advantages. Now, they will pay.”
China Strikes Back: 84% Tariffs on U.S. Goods
Beijing responded swiftly, announcing 84% tariffs on U.S. goods, including agricultural products, automobiles, and technology components. In a strongly worded statement, China’s Commerce Ministry accused the U.S. of “economic bullying” and vowed not to yield to “tax blackmail.”
“The U.S. administration’s reckless actions will only hurt their own economy and global trade stability,” said Chinese Foreign Ministry spokesperson Wang Wenbin. “China will not back down.”
The tit-for-tat measures have intensified fears of a full-blown global trade war, with economists warning of potential supply chain disruptions, inflation spikes, and slower economic growth worldwide.
Market Rollercoaster: Relief and Volatility
Investors, initially rattled by the escalating U.S.-China trade war, breathed a sigh of relief after Trump’s tariff pause for other nations. The Dow Jones, which had plunged nearly 4,000 points over the past two weeks, rebounded sharply, gaining 2,962 points in a single session. The Nasdaq’s 12% surge marked its biggest one-day gain since the 2008 financial crisis.
“Markets are reacting to the temporary reprieve, but the underlying uncertainty remains,” said Mark Zandi, chief economist at Moody’s Analytics. “Investors are still trying to gauge whether this is a short-term pause or the start of a broader de-escalation.”
European markets also saw gains, with Germany’s DAX and France’s CAC 40 both up over 4% in early trading. However, analysts caution that volatility is far from over.
Corporate America Braces for Impact
U.S. multinational companies, particularly those with heavy exposure to China, are bracing for fallout. Apple, Tesla, and Nike have already warned of potential price hikes and supply chain disruptions if tariffs remain elevated.
“This is a lose-lose situation,” said Tim Cook, Apple CEO, in an earnings call. “Higher tariffs will hurt American consumers and businesses while doing little to address the core issues in U.S.-China trade.”
The U.S. Chamber of Commerce and Business Roundtable have urged the administration to seek a negotiated settlement, warning that prolonged tariffs could trigger a recession.
What’s Next?
With the 90-day pause in place for most nations, attention now turns to whether the U.S. and China can negotiate a truce. However, given the hardened positions on both sides, hopes for a quick resolution appear dim.
Key developments to watch:
- Will China retaliate further? Beijing could impose non-tariff barriers, such as stricter regulations on U.S. firms operating in China.
- Will the Fed intervene? If markets remain unstable, the Federal Reserve may consider emergency rate cuts.
- Global supply chain shifts: Companies may accelerate efforts to move production out of China to avoid tariffs.
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