Donald Trump has announced a 90-day pause on tariffs effective immediately. The US president, in a post on his Truth Social platform, wrote: I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Trump also said he would be raising tariffs on China to 125%, also effective immediately, citing the “lack of respect that China has shown to the world’s markets”.

Facing a global market meltdown, President Donald Trump on Wednesday abruptly backed down on his tariffs on most nations for 90 days, but raised his tax rate on Chinese imports to 125%. U.S. markets surged in response. The S&P 500 was up 5.7% after erasing an earlier loss of 0.7%. The Dow Jones Industrial Average soared 2,000 points, or 5%, and the Nasdaq composite was up 6.8%. Investors have been desperate for Trump to ease up on his tariffs, which economists say could cause a global recession and increase inflation.

President Trump announced Wednesday that his heightened “reciprocal” tariff scheme was being paused for 90 days in response to overtures from dozens of countries — but duties on Chinese imports would be heightened to 125% due to a “lack of respect” from Beijing. “Based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the [US Trade Representative], to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump wrote on Truth Social, sending Wall Street soaring.