In a dramatic shift in trade policy, USA President Donald Trump has announced an immediate 90-day suspension on a broad range of recently imposed tariffs. The move, revealed Wednesday evening via his social media platform Truth Social, temporarily halts new duties for most countries—excluding China, Mexico, and Canada—and reduces other tariffs to a flat rate of 10%. However, tariffs on steel, aluminum, and automobiles remain in place for all.
The announcement follows what Trump described as “calls from over 75 countries” seeking to open negotiations on tariffs and broader economic issues. Speaking at a press conference in Washington, he clarified that the pause only applies to countries that have not retaliated against USA trade measures.
China singled out for harsher treatment
While most countries will benefit from the pause, the Trump administration is taking a markedly tougher stance on China. The President has raised tariffs on Chinese imports to 125%, citing a lack of respect for global trade rules.
“At some point, hopefully soon, China will realize that the era of cheating the United States and others is no longer sustainable or acceptable,” Trump wrote. His remarks came just hours after China imposed 84% tariffs on American goods, in response to a previous U.S. hike to 104%.
White House officials say a deal with China is still possible, but analysts remain skeptical. “The USA has been met with strong retaliation, and Trump is likely trying to dissuade other countries from following China’s example,” said Kjersti Haugland, Chief Economist at DNB.
Markets rally despite uncertainty
Following the announcement, USA markets posted historic gains. The Nasdaq index rose by 12.16%, its best single-day performance in 24 years. The S&P 500 climbed 9.52%, while the Dow Jones jumped 7.82%.
Trump’s post on Truth Social earlier in the day, encouraging investors that “this is a great time to buy!”, raised eyebrows among analysts. Some questioned the ethics of the timing, given the market surge that followed.
However, Jesper Lau Hansen, a professor of securities law at the University of Copenhagen, noted that the public nature of Trump’s statement likely protects it from legal scrutiny. “It’s a general and optimistic statement meant to lift spirits,” he said.
Norway and Europe seek clarification
Although the European Union is expected to be covered by the 90-day pause, uncertainty remains. Norway’s Trade Minister Cecilie Myrseth (Ap) told NRK that her department is still working to confirm the scope of the suspension. “There are no official sources available yet, which makes it especially challenging to verify the current situation,” she said.
Meanwhile, top Norwegian business leaders have welcomed the temporary relief. Ole Erik Almlid, CEO of NHO (Confederation of Norwegian Enterprise), called the pause a “positive development,” but warned that the intensifying conflict with China could still lead to severe economic consequences.
WTO warns of global trade collapse
The World Trade Organization (WTO) estimates that escalating tensions between the U.S. and China alone could result in an 80% drop in bilateral trade volumes. “This tit-for-tat strategy between the world’s two largest economies could severely damage global economic prospects,” the organization said in a statement.
What comes next?
While the pause is being interpreted as a potential opening for renewed diplomacy, many observers remain cautious. Trump has said that “everyone will get fair deals,” but few details have emerged about what those deals might look like.
With tariffs still active on key industries and uncertainty over which countries are officially covered by the pause, the next few weeks will be critical for global trade relations.
Update: The EU has announced that it will also suspend tariffs on USA goods to negotiate an agreement.
