US President Donald Trump’s 90-day tariff pause has stunned markets and allies, but China faces increased levies amid escalating trade tensions. Here’s why.
April 10, 2025: 🔍 Why the Sudden Pause?
On Wednesday, US President Donald Trump made an unexpected announcement: a 90-day pause on reciprocal tariffs for over 75 countries, while simultaneously raising tariffs on China to a whopping 125%. The decision came after days of global market turmoil and diplomatic pushback, but Trump insisted it was a result of other nations cooperating and not retaliating.
“Based on the lack of respect that China has shown to the World’s Markets, I am raising the tariff… to 125%, effective immediately.” — Donald Trump on Truth Social
🇨🇳 Why China Was Singled Out
Trump accused China of unfair trade practices, currency manipulation, and stealing intellectual property. He framed the hike as a direct message to President Xi Jinping, saying China has “robbed” the global economy for too long.
Also Read: Markets Soar as Trump Pauses Tariffs: S&P 500 Logs 3rd Best Day Since WWII
🏦 Behind the Scenes: What Really Drove the Decision
While Trump has publicly maintained a tough stance, insiders say it was mounting pressure from Treasury officials and the bond market reaction that tipped the scale.
- US Treasury Secretary Scott Bessent reportedly warned Trump about the worsening Treasury bond selloff
- A potential market collapse and global recession fears alarmed the White House
- Trump said the announcement was “written from the heart,” hinting it was impulsive and emotionally driven
“You have to be flexible. People were getting a little afraid.” — Trump, responding to market panic
📈 Market Reaction
Markets responded with historic surges:
- Dow Jones: +2,500 points
- Nasdaq: +12.2% (best day in 24 years)
- S&P 500: +6%
- Oil prices: Jumped 4%
- US Dollar: Strengthened sharply
🇮🇳 Impact on India
India, which was facing a 26% reciprocal tariff, is one of the countries benefiting from the 90-day pause. The Ministry of External Affairs confirmed ongoing talks for a multi-sectoral trade agreement with the US.
“We hope these relations will continue to foster and deepen.” — Randhir Jaiswal, MEA Spokesperson
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Trump Tariff Pause, US-China Trade War, Donald Trump 125% Tariff China, Global Market Reaction, India-US Trade Deal, Reciprocal Tariffs, Scott Bessent, Truth Social Announcement, US Stock Market Surge, Trade War 2025