SEAToday.com, Jakarta - US President Donald Trump has announced a 90-day pause on higher US tariffs for countries that have not retaliated, while sharply escalating the trade war with China. 

Just hours after sweeping tariffs on around 60 countries took effect, Trump introduced a universal “lowered reciprocal tariff of 10%” and raised China’s tariffs to 125%.

“I did a 90-day pause for the people that didn’t retaliate because I told them ‘if you retaliate, we’re going to double it’—and that’s what I did with China,” Trump said as quoted on BBC. 

He added, “It’s all going to work out amazing,” as quoted on BBC, and expressed optimism that Chinese President Xi Jinping would seek a deal.

This move follows last week’s sweeping tariff policy that set a 10% baseline on all US imports, with higher rates targeting countries the White House deemed “worst offenders” of unfair trade. Affected partners included the EU, Vietnam, and South Africa, with tariffs reaching up to 100%.

China had already faced a 20% US tariff earlier this year, followed by a 34% hike last week. In retaliation, China imposed a 34% tariff on US goods, escalating to 84% after Trump raised US tariffs to 104% on Tuesday. Beijing vowed to “fight to the end” if the US continues provoking a trade war.

China’s Foreign Ministry condemned US actions as “abusive” and “bullying,” demanding equality and mutual respect. 

The WTO warned that US-China goods trade could plunge by 80%, or $466 billion. 

“Our assessments highlight the substantial risks associated with further escalation,” WTO chief Dr. Ngozi Okonjo-Iweala said as quoted on BBC.

Trump’s revised plan boosted market confidence, with the S&P 500 jumping 9.5% and the Dow Jones gaining 7.8% after the announcement.

Writer: Andi Raisa Malaha Thambas