Trump pauses tariffs on most nations yet raises duties on China to 125%

President Donald Trump announced a 90-day pause on higher reciprocal tariffs for most U.S. trading partners, offering a temporary reprieve in his ongoing global trade conflict. The pause excludes China, which will now face a staggering 125 percent tariff rate — effective immediately — following what Trump called a lack of “respect” for global markets.

The move is a dramatic shift in Trump’s trade policy and comes after more than 75 countries reportedly reached out to the U.S., expressing willingness to negotiate.

“These countries have not, at my strong suggestion, retaliated in any way,” Trump said in a statement posted today on Truth Social. “I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 percent, also effective immediately.”

The tariff pause, however, does not roll back previous duties and does not apply to products like steel, aluminum, autos, lumber, and pharmaceuticals, which remain subject to existing or planned tariffs.

Among the most-discussed agricultural products in the tariff discussions are soybeans, especially because China is such a major export market for them. U.S. soybean exports to China have already declined significantly since their peak in 2018.

“While it was not unexpected, the resulting cloud of concern following the administration’s tariff announcement is not without fallout — in the form of continued market uncertainty, the threat of lost business to existing soy markets due to potential tariff retaliation, price increases on inputs and more,” the American Soybean Association said. The ASA estimates U.S. soybean producers could lose $5.9 billion annually due to the tariffs.

In response to the announcement of the pause, Associated Equipment Distributors President & CEO Brian P. McGuire welcomed the pause, urging policymakers to use the window to find a long-term solution.

“AED encourages continued negotiations that result in free and fair trade, and in long-term certainty for the equipment industry and our customers,” he said. “The time is now for our leaders in Washington to focus efforts on enacting tax policies that incentivize capital investment and economic growth rather than imposing trade barriers on our key partners.”

The White House has yet to clarify which nations fall under the 90-day pause. Meanwhile, the European Union is expected to enact retaliatory tariffs next week, potentially escalating tensions once more. Treasury Secretary Scott Bessent confirmed that core tariffs on key sectors will remain in place, signaling that while the rhetoric may have cooled temporarily, the broader trade conflict is far from over.

Trump has long promoted tariffs as the key to solving America’s economic challenges. When he unveiled his latest plan on April 2 — calling it “Liberation Day”– he declared it a turning point that would put an end to what he described as decades of the U.S. being taken advantage of by other nations.