President Trump on Wednesday announced a 90-day pause on most of his new tariffs, and a lowering of the “reciprocal tariff” rate to 10%, effective immediately, he said on Truth Social.
The U.S. stock market surged immediately after the president’s announcement. At the same time, the president said he’s increasing the tariff rate on goods imported from China to 125%.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” he wrote.
Treasury Secretary Scott Bessent and White House press secretary Karoline Leavitt clarified to reporters moments later that the universal tariff rate for the next 90 days will be 10% for virtually all countries, with the exception of China.
The tariff rate of 10% includes the European Union. It’s unclear what will happen after the 90-day period concludes, while countries negotiate with the Trump administration. Previous tariff rates on steel, aluminum and auto imports remain unchanged, a White House official said.
CBS News 24/7 is answering your questions about tariffs in a special airing on Wednesday at 6 p.m. ET. Download the CBS News app on your phone or connected TV to watch it live.
Mr. Trump wrote: “Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
Speaking to reporters during a race car event at the White House on Wednesday afternoon, the president was asked to explain how he reached a decision to issue the pause.
“Well, l thought that people were jumping a little bit out of line, they were getting yippy, you know?” the president said. “They were getting a little bit yippy, a little bit afraid, unlike these champions.”
“I was watching the bond market,” he added. “The bond market is very tricky. I was watching it. But if you look at it now, it’s, it’s beautiful. The bond market right now is beautiful. But yeah, I saw last night where people were getting a little queasy.”
The president said he “did a 90-day pause for the people that didn’t retaliate.”
Bessent said he expects the number of countries trying to negotiate with the U.S., which is over 75 now, to climb even higher.
“President Trump wants to be personally involved,” Bessent said in explaining the reason for the 90-day pause.
“No one creates leverage for himself like President Trump,” Bessent said. Despite the days of market volatility since the tariffs were announced, Bessent said this was Mr. Trump’s “strategy all along.”
On Tuesday, Leavitt reiterated Mr. Trump’s insistence that he wasn’t considering an extension or delay.
The so-called “reciprocal” tariffs above the baseline 10% worldwide rate went into effect Wednesday.
“It’s unfolded exactly the way it should. It’s a beautiful thing,” said top White House adviser Peter Navarro on Fox Business Channel.
Shortly before announcing the pause Wednesday, Mr. Trump took to Truth Social to write, “THIS IS A GREAT TIME TO BUY!!!”
