U.S. President Donald Trump announced on Wednesday that he is putting a 90-day hold on his new tariffs for countries with rates higher than his baseline of 10 percent. This decision comes after over 75 countries expressed interest in starting trade negotiations with the United States. The pause will lower tariffs to 10 percent for most countries, except for China, which will see its tariff rate skyrocket to 125 percent due to its retaliatory actions in the ongoing trade conflict.
Trump made the announcement shortly after his global tariff policy went into effect at midnight. He explained that the pause is meant to help countries that have not retaliated against U.S. tariffs. “A deal can be made with every one of them,” Trump stated, emphasizing the need for fair agreements that benefit the U.S.
The stock market reacted positively to Trump’s announcement, recovering from earlier losses that stemmed from uncertainty about the global economy. In the Oval Office, Trump mentioned that the idea for the pause emerged early Wednesday morning and was made with genuine intent.
However, the pause does not impact specific tariffs already in place on foreign steel, aluminum, and the auto industry, nor does it change the 25 percent tariffs on certain Canadian goods. Canada and Mexico remain exempt from the 10 percent baseline tariff, but they could face a 12 percent tariff if the fentanyl-related tariffs are lifted.
Matthew Holmes from the Canadian Chamber of Commerce expressed frustration, noting that despite being a close ally, Canada is still treated worse than many other countries, second only to China. The White House confirmed that the 90-day pause applies to all countries, including the European Union, which was facing a higher 20 percent tariff.
U.S. Treasury Secretary Scott Bessent indicated that the administration is in talks with countries like Vietnam, Japan, South Korea, and India for potential trade deals. Trump has made it clear that the U.S. is open to negotiations, stating, “Every country in the world who wants to come and negotiate, we are willing to hear you.”
The situation with China remains tense, as the country has increased its tariffs on U.S. goods in response to Trump’s actions. Bessent described China’s escalation as a misstep, suggesting it reveals their position as a less favorable trading partner. Trump remains hopeful that a deal can be reached with China, but insists that they must first back down from their retaliatory measures.
This pause in tariffs reflects a shift in Trump’s approach, which had previously been characterized by a more rigid stance. The decision aims to foster negotiations and potentially stabilize the global market, which has been shaken by the uncertainty surrounding trade policies. As the administration seeks to engage with various countries, the outcome of these discussions could reshape international trade relations in the coming months.