US postpones tariff hikes on most countries, except China

President Donald Trump has unexpectedly postponed tariff hikes on most countries, except China, for 90 days in a bid to ease global trade tensions after markets were roiled and recession fears grew.

President Donald Trump has postponed planned tariff hikes on most countries – except China – by announcing a 90-day delay, backing off an escalation in the global trade war after days of financial market turmoil and warnings of an economic downturn.

After days of sticking to his tough trade strategy, Trump suddenly announced that all countries that have not retaliated against the US tariffs will be suspended from imposing additional tariffs – a flat rate of 10% – until July.

When asked why he had ordered the suspension, Trump told reporters: “People were jumping a little bit out of line. They were getting yippy.”

However, as Beijing prepares to impose retaliatory tariffs of up to 84% on US goods starting tomorrow, Trump has vowed to raise tariffs on Chinese exports to 125% immediately.

Trump claimed on the social media network Truth Social that “more than 75 countries” have contacted the US federal government "to negotiate a solution” since he announced his plan to impose high tariffs on their exports.

Global stock markets have surged following the announcement. On Wall Street, the S&P 500 surged 9.5% — its biggest one-day gain since 2008 — while the Dow Jones Industrial Average rose 7.9%. The tech-heavy Nasdaq Composite rose 12.2% — its best since 2001 — with stocks like Apple and Nvidia leading the gains.

The quick recovery helped ease the tumultuous trading days earlier. US government bonds — some of the world’s safest financial assets — had seen a sharp sell-off before Trump’s climbdown.

Trump, however, has maintained a tough stance on China. “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,” he wrote when announcing the new round of tariffs on Beijing.

“BE COOL,” he urged in an earlier post. “Everything is going to work out well,” he said, before deciding to back down — setting off three months of tense negotiations with dozens of countries.

Trump said he had been considering the decision “over the last few days.” “We don’t want to hurt countries that don’t need to be hurt,” he said. “And they all want to negotiate.”

Initially, administration officials said Mexico and Canada would also be hit with a 10% tariff, raising tensions with two of America’s biggest trading partners and neighbors. However, it was later clarified that the two countries would be exempt from the new tariffs.

China has vowed to retaliate against Trump’s move, raising tariffs on US goods from 34% to 84% and calling the decision to escalate the trade war “a mistake on top of a mistake.”

Meanwhile, EU member states have approved retaliatory tariffs of 25% on up to $23 billion of US goods – targeting agricultural products and products from Republican-leaning states – starting next week, in response to the steel and aluminum tariffs Trump imposed last month.

Trump announced his decision to delay tariffs above 10% on dozens of countries during a congressional hearing attended by US trade representative Jamieson Greer.

“It looks like your boss just pulled the rug out from under you,” Democratic Representative Steven Horsford of Nevada told Greer. “This is amateur hour, and it needs to stop.”

For days, Trump’s insistence on making the tariffs permanent – and the ambiguity about whether they can be adjusted through agreements – has raised concerns about the negative impact on consumers and businesses around the world.

In the UK, two government sources expressed growing pessimism about the prospects of negotiations to reduce tariffs on exports to the US, while Prime Minister Keir Starmer repeatedly stressed that this was “not a passing phase”.

Asked by ITV whether the 10% tariff would remain and whether a 25% tariff on cars could be negotiated, Starmer replied: “Look, I don’t know. We are negotiating and we hope to improve the situation.”

JPMorgan CEO Jamie Dimon – one of Wall Street’s most influential figures – said before Trump announced the delay that a recession was a "likely outcome” given the current volatility.

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