Trump backs down on tariff plan for 90 days

But also raises tariffs on China to 125%

- ANA SWANSON TONY ROMM

President Donald Trump on Wednesday said he would pause his “reciprocal” tariffs for most countries for the next 90 days, backing down on his policy that had sent markets into a tailspin and threatened to upend global trade.

But Trump said the relief would not affect China, announcing that he would instead raise tariffs on its exports to 125% after Beijing announced anew round of retaliation.

White House press secretary Karoline Leavitt said the tariff rate would be brought down to a universal 10% — a significant reduction for many countries.

In announcing the pause, the White House repeatedly tried to suggest itwas all part ofa premeditated strategy. Ms Leavitt accused reporters of having “failed to see what President Trump is doing here,” and Treasury Secretary Scott Bessent said it was Trump's “strategy all along”

But the abrupt change in course came amid a sell-off in US bonds, which are generally safer investments and after days of deep losses in financial markets around the globe. Economists had expressed serious concerns that the United States might be careening toward a recession.