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

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🇨🇳 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

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🏦 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

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📈 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

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🇮🇳 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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🏷️ 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