President Donald Trump has announced a 90-day suspension of elevated tariffs for most countries while sharply increasing tariffs on Chinese imports to 125%.
The announcement, made on April 9, comes amid growing global economic uncertainty and rising pressure from international partners, domestic lawmakers, and financial markets. The temporary pause halts the newly introduced ‘reciprocal tariffs,’ which had only taken effect the previous day. The decision aims to ease fears of economic disruption triggered by the sweeping trade measures.
Despite the pause, a 10% baseline tariff will still apply to most imports, and the existing 25% duties on steel, aluminum, and automobiles remain unchanged. The White House has signaled that countries opting not to retaliate may be considered for improved trade terms in the future.
In stark contrast to the reprieve given to other nations, Chinese exports to the US will now face a steep 125% tariff. This escalation comes in response to Beijing’s recent move to impose an 84% tariff on American goods.
Financial markets responded positively to the news. The S&P 500 surged 9.5%—the largest single-day gain since the 2008 financial crisis—while the Nasdaq and Dow Jones also posted substantial gains. The market rally reflects investor optimism that the temporary easing could help stabilise global trade flows.
Some Senate Republicans, previously critical of the tariff plan, welcomed the pause, citing concerns over the potential strain on businesses and consumers.
To shield the technology sector and consumers from immediate impact, the administration has exempted certain electronics—including smartphones, laptops, and semiconductor equipment—from the elevated tariffs. The exemption is seen as a relief for major US tech firms heavily dependent on Chinese manufacturing.
Although the 90-day pause offers temporary relief, questions remain about the administration’s long-term trade direction. The prospect of further tariff shifts continues to cloud the outlook for global economic stability.
TRADE WORLD | Trump Exempts Smartphones and Computers from Latest Tariffs
