Trump limits tariffs on most nations for 90 days; raises Chinese import tax rate to 125%

WASHINGTON - President Donald Trump hit pause in the face of intense pressure created by volatile financial markets that had been pushing him to reconsider his tariffs, even as some administration officials insisted the his reversal had always been the plan.

A number of taxes on goods from other countries were already in place, and more took effect at midnight. For its part, China announced countermeasures, saying it will raise its retaliatory tariff on the U.S. to 84%, up from 34%.

That drew further retribution from Trump, but the president announced a 90-day pause and reduction in tariffs for other nations.

Trump: Israel would be 'leader' of any Iran strike

5:10 p.m. ET: President Donald Trump said Wednesday that Israel would be the "leader" of a potential military strike against Iran if Tehran doesn’t give up its nuclear weapons program.

Trump made the comments ahead of this weekend's scheduled talks involving U.S. and Iranian officials in the Middle East sultanate of Oman. Trump earlier this week said the talks would be "direct" while Iran has described the engagement as "indirect" talks with the U.S.

Mexico and Canada still face tariffs of up to 25%

5:05 p.m. ET: Despite President Donald Trump’s 90-day pause limiting tariffs, imports from Mexico and Canada will still get taxed by as much as 25%.

That’s according to a White House backgrounder, via the AP. Unlike the tariffs that Trump temporarily took down to 10% to give time for negotiations, the taxes on the United States’ two largest trading partners are a separate matter. Mexico and Canada are being tariffed ostensibly to stop fentanyl smuggling and illegal immigration.

The backgrounder contradicted an earlier statement by Treasury Secretary Scott Bessent, who said Mexico and Canada would also be tariffed at 10%.

Final market numbers

4:21 p.m. ET: U.S. stocks soared after President Trump pivoted on his tariff strategy pausing tariffs on those nations willing to negotiate, while ramping up tariffs on China by 125%.

• Dow Jones Industrial Average spiked nearly 3,000 points or 8%.
• Nasdaq Composite added over 1,860 points or 12%
• S&P 500 tacked on 472 points or nearly 10%
• Tesla, Nvidia and Apple added double-digit gains in the snap back.

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Markets jump after tariff pause

2:00 p.m. ET: The S&P 500 was up 7.8% in afternoon trading, the AP reported. It had been down earlier in the morning amid worries about Trump’s trade war and whether it would cause a recession, as economists fear. But it spiked immediately after Trump sent the social media posting that investors have been waiting for. The Dow Jones Industrial Average was up 2,476 points, or 6.6%, as of 1:35 p.m. Eastern time, and the Nasdaq composite was 9% higher.

Treasury secretary clarifies

1:50 p.m. ET: Treasury Secretary Scott Bessent just told reporters that President Trump was pausing his so-called ‘reciprocal’ tariffs on most of the country’s biggest trading partners, but maintaining his 10% tariff on nearly all global imports. He reiterated that China's level would jump to 125%.

Trump announces tariff pause, except for China

1:30 p.m. ET: In a Truth Social post, the president announced a 90-day pause on new tariffs, except for China, which he raised to 125%, "effective immediately."

"At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable," he wrote.

The news sent stocks surging, with the Dow up 1,800 points.

Global markets surged on the development, but the precise details of Trump's plans to ease tariffs on non-China trade partners were not immediately clear, the AP noted.

Trump to issue executive orders on deregulation

12:55 p.m. ET: As the White House grapples with the economic fallout of Trump’s new tariffs, the president is shifting his focus to loosening regulations.

He is expected to sign a slew of executive orders later Wednesday that are centered around deregulation, according to a White House official. That person was granted anonymity to preview Trump’s plans, the Associated Press reports.

Stocks volatile as tariff wars escalate

12:30 p.m. ET: U.S. stocks maintained gains on Wednesday as Trump's tariffs went into effect.

The Dow Jones Industrial Average, up nearly 200 points at the open, trimmed its advance to under 100 points, while the S&P 500 rose 0.5% and the Nasdaq Composite over 1.3%, also giving back some gains. The tech-heavy Nasdaq was the first to sink into a bear market last Friday.

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EU imposes new tariffs on $23B in US goods

10:55 a.m. ET: European Union member states voted to approve the retaliatory tariffs in response to Trump’s 25% tariffs on imported steel and aluminum, the Associated Press reports.

The tariffs will go into effect in stages, with some on April 15 and others on May 15 and Dec. 1. The EU executive commission didn’t immediately provide a list of the goods on Wednesday.

The head of the EU’s executive commission, Ursula von der Leyen, has offered a zero-for-zero tariffs deal on industrial goods, including cars. But Trump has said that’s not enough to satisfy U.S. concerns.

Trump: ‘USA will be bigger and better than ever’

9:33 a.m. ET: Trump posted on his Truth social account on Wednesday, writing: "BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!"

A few minutes later, the president followed up with: "THIS IS A GREAT TIME TO BUY!!! DJT"

Delta says growth has stalled in trade war

9 a.m. ET: On Wednesday morning, Delta Air Lines pulled its guidance for 2025 as Trump's trade war scrambles expectations for business and household spending and lessens bookings across the travel sector.

"With broad economic uncertainty around global trade, growth has largely stalled," CEO Ed Bastian said in a statement on Wednesday. "In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control. This includes reducing planned capacity growth in the second half of the year to flat over last year while actively managing costs and capital expenditures."

Bastian said Delta foresees June quarter profitability of $1.5 to $2 billion but will not update its full-year outlook "given the lack of economic clarity."

Japanese officials aim for stability 

8 a.m. ET: Japanese Finance Ministry official Atsushi Mimura told reporters on Wednesday that his ministry had agreed with Bank of Japan and the Financial Services Agency "to do their utmost to keep stability in the global financial markets."

Mimura made the comment to Kyodo and other reporters after he met with Koji Nakamura and Seiichi Shimizu, directors at the Bank of Japan, and other financial officials at the ministry's offices.

Although Trump's name was not mentioned, the hastily called meeting appeared to be a response to recent volatility in global stock markets, including the Tokyo Exchange, that has followed Trump’s tariffs, as well as worries about possible damage to the Japanese economy.

China retaliates with 84% tariffs on US goods

7:15 a.m. ET: China on Wednesday said it would raise tariffs to 84% on goods coming from the U.S. in an additional countermeasure, effective April 10. 

Last week, China said it would levy 34% tariffs on all U.S. goods.

China vows to ‘fight to the end’

6:15 a.m. ET: In a lengthy policy statement published on Wednesday, China again vowed to "fight to the end" against Trump’s tariffs. The country argued that trade between the two countries is in balance as a 104% tax on the country’s exports to the U.S. came into effect.

The government declined to say whether it would negotiate with the White House, as many other countries have started doing.

"If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end," the Ministry of Commerce wrote in a statement introducing the white paper.

The paper says that the U.S. has not honored the promises it made in the phase 1 trade deal concluded during Trump’s first term, and argues that taking into account trade in services and U.S. companies’ domestic Chinese branches, economic exchange between the two countries is "roughly in balance."

Trump tariffs: What took effect on Wednesday?

What we know:

Trump announced his most sweeping round of tariffs on April 2, which he called "Liberation Day," as part of his "reciprocal" trade plan. In a speech claiming that other countries have "ripped off" the U.S. for years, Trump declared that the U.S. would now tax nearly all of America’s trading partners at a minimum of 10% — and impose steeper rates on countries that he says run trade surpluses with the U.S.

The 10% baseline already went into effect on Saturday. And when the clock struck midnight on Wednesday, the higher import tax rates on dozens of countries and territories took hold.

The steeper levies run as high as 50% — with that biggest rate landing on small economies that trade little with the U.S., including the African kingdom of Lesotho. Some other rates include a tax of 47% on imports from Madagascar, 46% on Vietnam, 32% on Taiwan, 25% on South Korea, 24% on Japan and 20% on the European Union.

Dig deeper:

Economists warn that the levies will raise prices for goods consumers buy each day — particularly as these new tariffs build on some of the previous trade measures. Trump last week announced a tariff of 34% on China, for example, which would come on top of 20% levies he imposed on the country earlier this year. Trump then added another 50% levy on Chinese goods in response to Beijing’s recently-promised retaliation. 

That took the combined total to 104% against China.

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