Explained: Why Donald Trump Paused Tariffs for 75 Countries But Raised Them to 125% for China

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.

Also Read: US Invites India to Trade Talks After Tariff War Escalation With China, Says Scott Bessent

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

Also Read: Trump Raises Tariffs on China to 125%, Announces 90-Day Pause for 75 Trade Partners Including India

🇮🇳 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

🏷️ Tags:

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

News Desk