KUALA LUMPUR — US President Donald Trump on Wednesday hit the pause button for 90 days on reciprocal tariffs for the country’s major trading partners – except for China – citing diplomatic engagement and goodwill as factors behind the move.
The April 9 announcement came on the same day the president increased US tariffs on Chinese imports to 125%, and when the reciprocal tariffs were to have taken effect.
The 10% baseline tariff which was implemented on April 5, however, remains in place.
But Trump hit back at China harder, raising tariffs from 104% to 125% after Beijing announced additional retaliatory tariffs against the US earlier – heightening the a trade war between the two countries.
“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,” Trump said in his social media post.
“At some point, hopefully in the near future, China will realise that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” he wrote.
The volatile president said the three-month pause on reciprocal tariffs on other countries was something he had been considering over the “last few days”.
“I’ve been thinking about it. I’ve been dealing with Scott, with Howard, with some other people who are very professional … and I think it probably came together early this morning. Just wrote it up,” Bernama-Anadolu Ajansi reported him saying, referring to Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.
“We don’t want to hurt countries that don’t need to be hurt — and they all want to negotiate.”
In a post on his Truth Social platform, Trump said the delay was prompted by outreach from affected nations aiming to “negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non-Monetary Tariffs.”
CNN reported the president citing mounting criticism on the White House over the last week, citing sources that a key reason for the delay was the sharp sell-off in US government bond markets which led to a private meeting between Bessent and the president Tuesday before the pause announcement.
“They were getting a little bit yippy, a little afraid,” Trump said, according to CNN
The 90-day reprieve affects over 75 countries – including Malaysia which was imposed a 24% tariff – many of which have lined up to negotiate the reciprocal tariffs with the White House.
Trump cited countries keen to negotiated for not retaliating against his reciprocal tariffs “in any way, shape, or form” as a reason in part for the pause.
Markets responded with a historic rally following the decision, with the tech-heavy Nasdaq closing up more than 12% and the Dow gaining over 7.8%after a week of steep losses. – April 10, 2025