US President Donald Trump on Wednesday paused his controversial tariff plan for most nations for 90 days while significantly increasing tariffs on Chinese imports to 125%. The abrupt shift comes amid a growing backlash from business leaders, allies, and financial markets, as Trump's sweeping trade policies sent shockwaves through the global economy. Treasury Secretary Scott Bessent said the suspension of the "reciprocal" tariffs on most trading partners is temporary, while tariffs on Chinese goods would take immediate effect. "The 10% baseline tariff on global imports remains in place, but we are narrowing the focus of our trade measures," Bessent said, emphasizing the administration's intent to isolate China as the main target. Trump confirmed the move in a post on his social media platform, Truth Social, declaring: "The world has taken advantage of America for too long — not anymore!" The new 125% tariff on Chinese goods marks the most aggressive trade action to date by the Trump administration, in a move analysts say could further strain U.S.-China relations and ripple across global supply chains. The original tariffs included 104% on Chinese imports, 20% on EU goods, 24% on Japanese imports, and 25% on South Korean products. Global markets rallied following the tariff pause, signaling relief from fears of a full-blown trade war. Still, economists warned the damage may already be done. "Markets are desperate for signs of de-escalation," said Gennadiy Goldberg, head of U.S. rates strategy at TD Securities. "But if uncertainty continues, investor confidence will remain fragile." Bond markets reflected the unease, with yields on U.S. 10-year Treasuries spiking to 4.45%, an unusual move that suggests investors are wary of political risks affecting U.S. debt. The S&P 500, meanwhile, remains down more than 18% since February 18, when Trump began signaling his tariff push. Trump, however, maintained his defiance, calling the economic slump temporary. "THIS IS A GREAT TIME TO BUY!!!" he wrote. "Everything is going to work out well. The USA will be bigger and better than ever before!" JPMorgan Chase CEO Jamie Dimon warned of a likely recession if the trade dispute escalates. "Fixing these tariff and trade issues would be a good thing to do," he said in a Fox Business interview. Delta Air Lines CEO Ed Bastian said the administration's policies had created planning "chaos" for businesses. "Trying to do it all at the same time has disrupted our ability to forecast demand and growth," he said. Adding to the volatility, China responded with an 84% tariff on American goods, while Canada matched the U.S. 25% auto tariff. The European Union also announced retaliatory measures, including levies on $28 billion worth of American goods. Trump's team insists the shift toward a more focused trade conflict with China is strategic. "There's been an overwhelming response from countries wanting to negotiate," Bessent said, citing Japan, South Korea, India, and Vietnam. "We're bringing people to the table." The administration also announced plans to end the "de minimis" exemption, which allows goods under $800 in value to enter duty-free, starting with Chinese and Hong Kong imports from May 2. The White House continues to explore additional tariffs on sectors such as pharmaceuticals, semiconductors, copper, and lumber. While the 90-day pause may relieve short-term pressure, economists caution that the broader uncertainty surrounding U.S. trade policy could weigh on investment and consumer confidence for months to come. "The risk of a policy-induced recession is real," said Joe Brusuelas, chief economist at RSM. "The administration needs to bring clarity quickly — or markets may not wait." — Agencies
