U.S. President Donald Trump has authorized a 90-day pause on many of the recently imposed reciprocal tariffs, signaling a temporary easing of trade tensions with most American trade partners.

The White House confirmed the president’s decision on Wednesday, stating that “the tariff level will be brought down to a universal 10%,” with China being the sole exception.

The move comes just hours after nearly 90 countries began facing higher tariffs under a sweeping reciprocal trade policy introduced by the administration. The tariffs, ranging from 11% to 50%, had officially taken effect earlier in the day.

However, in a dramatic escalation against Beijing, Trump simultaneously announced an immediate increase in tariffs on Chinese imports to 125%. In a social media post, he cited China’s “lack of respect for the World’s Markets” as justification for the hike.

The president’s announcement followed China’s own decision earlier Wednesday to raise tariffs on American goods to 84%, further straining trade relations between the world’s two largest economies.

According to Trump, over 75 countries have contacted U.S. officials in recent days seeking to begin trade negotiations. “They were getting a little bit yippy, a little bit afraid,” Trump said in remarks at the White House, suggesting the pause was intended to encourage diplomatic dialogue.

The financial markets welcomed the development. The S&P 500 index surged 7% following the news, snapping a four-day losing streak and recording its largest single-day gain in five years.

Treasury Secretary Scott Bessent defended the timing of the announcement, insisting that the tariff pause was part of a broader strategic plan. “This was his strategy all along,” Bessent told reporters, despite prior denials from administration officials that a suspension was being considered.

Under Trump’s initial plan, more than 180 countries were to be subjected to a 10% baseline tariff, with a subset of 90 nations facing significantly steeper, reciprocal rates beginning Wednesday.

Reaction from Capitol Hill was swift. Senate Minority Leader Chuck Schumer (D-NY) accused the president of backtracking under political pressure. “He is reeling, he is retreating, and that is a good thing,” Schumer said. “This is the government by chaos.”

Commerce Secretary Howard Lutnick later revealed that he and Bessent were with Trump as he composed the announcement on Truth Social, calling it “one of the most extraordinary Truth posts of his Presidency.”

In the post, Trump warned that China’s trade behavior was no longer sustainable and thanked countries that had refrained from retaliating against the U.S. He framed the 90-day tariff reduction as a good-faith gesture to enable constructive global trade discussions.

With trade negotiations now expected to intensify, the global economic community is closely watching how the U.S. navigates this high-stakes phase of its evolving trade agenda.