President Donald Trump announced on Truth Social Wednesday afternoon that he is postponing "reciprocal" tariffs for dozens of other nations while increasing tariffs on China to 125%. The announcement sent immediate shock waves on Wall Street, sending stocks soaring within mere minutes of his statement.
The U.S. began collecting "reciprocal" tariffs on imports from 86 different countries on Wednesday. The most notable of the tariffs was a 104% duty being imposed on goods being imported from China, which was raised after the country retaliated.
White House officials said that the 10% tariffs on global trade partners would remain in place. The U.S. is also keeping a 25% tariff on steel and aluminum imports, as well as levies on foreign automobiles.
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President Trump said he decided to pause the larger tariffs after people began getting "yippy" amid the market turmoil. He also expressed confidence that "fair" trade deals will be made with countries, including China.
"Nothing's over yet. But we have a tremendous amount of spirit from other countries, including China. China wants to make a deal," Trump stated.
Earlier on Wednesday, China announced it was increasing the tariffs it imposes on goods from the U.S. from 34% to 84%.
"China will continue to take resolute and strong measures to safeguard our legitimate rights and interests," said China's foreign ministry spokesperson Lin Jian.
President Trump has sought to lower the trade deficit that the U.S. has with China and other nations through tariffs. In 2023, the United States imported $436 billion in goods from China while sending $154 billion to China.
"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," Trump wrote on Truth Social. "At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable."
White House officials were hopeful Wednesday that other countries may adjust their own tariff plans now that the U.S. has backed off.
Commerce Secretary Howard Lutnick suggested EU tariffs may be similarly delayed.
"Europe put out some retaliatory tariffs, but they said they don't start for a couple of weeks, right? And I think what's going to happen is they are going to be pushed out for the 90 days, so they have time to negotiate with the president without having something hanging over their head," Lutnick told reporters at the White House.
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"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 authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!"
Investors did not react positively to President Trump's tariffs. The Dow Jones Industrial Average lost about 10% of its value in the four days after President Trump announced a broad set of tariffs.
Within minutes of President Trump's announcement on Wednesday, about half of the losses that were experienced throughout the previous week were negated.
