Trump Announces Tariff Pause, Hikes China Duties

President Donald Trump has announced a temporary 90-day pause on tariffs for most countries, reducing them to a baseline of 10%, while simultaneously increasing tariffs on Chinese imports to 125%. This decision comes after days of significant market losses and is seen as a strategic move to encourage trade negotiations with other countries while penalizing China for its retaliatory tariffs. Trump's announcement on Truth Social led to a dramatic surge in U.S. stock markets, with the Dow Jones and Nasdaq experiencing significant gains. The pause is intended to allow the U.S. to negotiate with countries that have not retaliated against the U.S. tariffs. White House officials, including Treasury Secretary Scott Bessent, have supported the move as a negotiating tactic, while markets responded positively to the news. The increase in tariffs on China comes amid escalating tensions between the U.S. and China in the ongoing trade war.