US President Donald Trump has announced a temporary pause on all "reciprocal" tariffs that went into effect at midnight, with the notable exception of China.
In a Truth Social post on Wednesday, Trump revealed he had authorised a 90-day suspension of the recently imposed tariffs, lowering them to 10 per cent during this period, reports CNN.
However, in a significant escalation against Beijing, he announced an increase in tariffs on Chinese goods to 125 per cent, up from the previous rate of 104 per cent.
"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 per cent, effective immediately," Trump wrote. "At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other countries, are no longer sustainable or acceptable."
The decision to raise tariffs on China follows Beijing's announcement of retaliatory tariffs on US goods, set to take effect on Thursday. The Trump administration has long criticized China's trade practices, accusing the country of unfair economic policies and intellectual property theft.
In his post, Trump emphasised that the 90-day pause aims to give other nations an opportunity to negotiate with the US.
"Every country in the world who wants to come and negotiate, we are willing to hear you," Treasury Secretary Scott Bessent said in a statement. He added that countries choosing not to retaliate against US tariffs would be rewarded, signalling a diplomatic effort to ease global trade tensions.
Commerce Secretary Howard Lutnick, who was present when Trump drafted the Truth Social post, described it as "one of the most extraordinary posts of his presidency."
Lutnick said, "The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction."
The announcement sparked a significant rally in financial markets. Stocks surged higher, with the Dow Jones Industrial Average climbing 2,200 points, or 5.9 per cent. The S&P 500 rose 6.5 per cent, while the Nasdaq Composite surged more than 8 per cent. Investors appeared optimistic about the temporary easing of trade tensions, despite the heightened measures against China.
While Trump paused tariffs for many trading partners, Bangladesh remains subject to a 10 per cent universal tariff under the reciprocal tariff policy.
Earlier on April 2, Trump imposed a 37 per cent reciprocal tax on Bangladeshi goods, citing trade imbalances.
In response, Chief Adviser Professor Muhammad Yunus reached out to President Trump on April 7, requesting negotiations to reconsider the tariffs.
Yunus proposed up to 50 per cent reduction in US export tariffs to Bangladesh and urged the US to postpone the application of reciprocal tariffs on Bangladeshi goods for three months.
This extension, Yunus argued, would provide Bangladesh with adequate time to implement measures aimed at boosting imports from the United States.
A formal letter addressed to Trump highlighted Bangladesh’s commitment to supporting America’s trade agenda while emphasising the potential disruption to bilateral trade relations caused by the current tariff measures.