WASHINGTON (AP) — President Donald Trump on Wednesday paused his tariffs on most nations for 90 days but raised the tax rate on Chinese imports to 125%. 

The S&P 500 stock index jumped nearly 7% after the announcement, but the precise details of Trump’s plans to ease tariffs on non-China trade partners were not immediately clear. 

Trump posted on Truth Social that because “more than 75 Countries” had reached out to the U.S. government for trade talks and have not retaliated in meaningful way “I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” 

The 10% tariff was the baseline rate for most nations that went into effect on Saturday. It’s meaningfully lower than the 20% tariff that Trump had set for goods from the European Union, 24% on imports from Japan and 25% on products from South Korea. Still, 10% would represent an increase in the tariffs previously charged by the U.S. government. 

White House press secretary Karoline Leavitt said the walk back was part of some grand negotiating strategy by Trump. 

“President Trump created maximum negotiating leverage for himself,” she said, adding that the news media “clearly failed to see what President Trump is doing here. You tried to say that the rest of the world would be moved closer to China, when in fact, we’ve seen the opposite effect the entire world is calling the United States of America, not China, because they need our markets.” 

Presidents often receive undue credit or blame for the state of the U.S. economy as their time in the White House is subject to financial and geopolitical forces beyond their direct control. 

But by unilaterally imposing tariffs, Trump is exerting extraordinary influence over the flow of commerce, creating political risks and rewards. 

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