Daijiworld Media Network- Washington
Washington, Apr 10: In a dramatic turn of events, US President Donald Trump announced a temporary pause on the majority of his proposed "reciprocal" tariffs, citing concerns that markets and global stakeholders were becoming "yippy" and "a little bit afraid."
The unexpected move comes amidst rising financial market turbulence and increasing pressure from global partners and influential voices within the US business community.
Addressing reporters, Trump remarked, “I thought people were jumping a little bit out of line… They were getting yippy, you know, a little bit afraid. You have to be flexible.”
The revised plan sees the tariff rate slashed to 10 percent for imports from over 75 countries that have refrained from retaliatory measures and are currently engaged in negotiations with the United States. This includes India, which is in talks for a Bilateral Trade Agreement with the US.
However, China remains an exception, as Trump announced an increase in tariffs on Chinese imports to 125 percent, a retaliatory move against Beijing's 84 percent tariff on American goods.
Trump made the official announcement via his social media platform Truth Social on Wednesday, shortly after markets opened to another volatile session. The news sent a wave of relief across Wall Street, with indexes, especially the Nasdaq, surging to record highs not seen in two decades.
“Based on the lack of respect that China has shown to the world’s markets... I am hereby raising the tariff charged to China... to 125 percent, effective immediately,” Trump wrote in his post.
He further explained that over 75 countries had reached out to the US Departments of Commerce, Treasury, and the USTR for negotiations, prompting him to authorize a 90-day pause and reduced reciprocal tariff rate.
The announcement follows rising calls from financial heavyweights, including hedge fund manager Bill Ackman, urging a cooling-off period to stabilize investor confidence. Even tech mogul Elon Musk, a known Trump ally, openly opposed the tariff policy and clashed with Peter Navarro, Trump's trade advisor.
In a bid to calm nerves, Trump reassured the public, writing, “Be cool! Everything is going to work out well. The USA will be bigger and better than ever before.” He followed it up with an all-caps message aimed at investors: “THIS IS A GREAT TIME TO BUY.”
Markets responded positively, but analysts remain cautious as the 90-day period unfolds.