Trump Pauses Most Tariffs, Raises China Rate to 125%

The 90-day pause on tariffs for most nations provides relief to markets, but heightened tensions with China signal continued uncertainty for the global economy.

• President Trump announced a 90-day suspension of reciprocal tariffs on most U.S. trading partners while maintaining a baseline 10% tariff on imports.
• China faces an increased tariff rate of 125%, escalating the trade conflict between the two largest global economies.
• Global markets responded positively to the pause, with U.S. indices like the S&P 500 and Nasdaq seeing historic single-day gains.
• The pause is intended to stabilize markets and open negotiations with over 75 countries, though businesses remain uncertain about long-term trade policy impacts.
• China's retaliatory tariffs of 84% on U.S. goods and the European Union's planned countermeasures highlight ongoing trade tensions despite the temporary reprieve.

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