Trump delays tariffs for most countries, increases China duties

US President Donald Trump temporarily lifted the steep tariffs he had imposed on dozens of countries while intensifying pressure on China. The move, made less than a day after the duties took effect, came in response to severe financial market turmoil that wiped out trillions in global stock value and sent US bond yields surging.

Although the administration introduced a 90-day freeze on most country-specific tariffs, it maintained a 10% blanket duty on nearly all US imports and kept existing levies on autos, steel, and aluminum. Notably, Canada and Mexico remain subject to 25% fentanyl-related tariffs unless their goods comply with the USMCA agreement.

Meanwhile, tariffs on Chinese imports will rise to 125% from the 104% rate implemented earlier on Wednesday, signaling Trump’s continued hardline stance. Treasury Secretary Scott Bessent said the pause was always part of a strategy to bring nations to the negotiating table, though analysts noted the confusion caused by Trump’s erratic policy shifts.

Markets reacted sharply to the announcement. Oil prices surged more than 4% on Wednesday, with Brent crude rising $2.66 to close at $65.48/bbl, while WTI NYMEX jumped $2.77 to $62.35/bbl. The rally followed a sharp decline earlier in the session when both benchmarks dropped around 7% to reach four-year lows.