WASHINGTON – US President Donald Trump announced 3-month pause on reciprocal tariffs, but jacked up tariffs on Chinese imports to 125%, up from the previous 104%, effective immediately.

The move comes amid new trade duties earlier this week and reflects growing tensions with Beijing. Trump cited China’s “lack of respect” for global markets as the reason for the steep tariff hike, while the 90-day pause will reduce the overall tariff rate to 10% for imports from most nations.

Trump’s social post revealed that more than 75 countries have reached out to U.S. officials to negotiate solutions, and the pause is meant to allow time for those talks. Commerce Secretary Howard Lutnick, alongside Treasury Secretary Scott Bessent, confirmed the announcement, calling it one of the most remarkable posts of Trump’s presidency.

In addition to China, Mexico and Canada will both face a 10% tariff on imports. White House Press Secretary Karoline Leavitt explained that the increased tariffs on China were in response to Beijing’s retaliation, but emphasized that the U.S. would continue individualized negotiations with various countries.

The announcement has already sparked positive reactions in the stock market, as investors anticipate potential relief and more diplomatic engagement in the coming months.

Following the announcement, U.S. stock markets saw a significant surge. Investors appeared optimistic about the potential for a negotiated settlement, which may stabilize global trade.

Trump’s strategy has already begun to spark interest from other countries, with anticipation growing that more nations will seek to negotiate terms over the coming weeks.