US postpones 90-day reciprocal tax, increases tax to 125% with China

According to CNBC, Mr. Trump's change of stance came less than 24 hours after tough reciprocal tariffs took effect with nearly 90 countries. The US leader said that lowering tariffs to 10% for most of the US's trading partners was in order to negotiate with these countries.

In a post on the social network Truth Social, Mr. Trump announced that he would increase import tariffs from China to 125% and this would take effect immediately due to China's lack of respect for the world market.

China, the US's third largest trading partner, previously announced it would increase import tariffs on US goods to 84%.

According to Mr. Trump, more than 75 countries have contacted US officials for negotiations after he announced the new tariffs last week. Following the US President's announcement to postpone the high reciprocal tariffs, stock indexes jumped after four days of decline.

Asked about the reason for his decision to suspend taxes for 90 days, Mr. Trump said: "People think I'm going a little overboard... I saw people were a little nervous last night, but now the bond market is very beautiful."

Treasury Secretary Scott Besset told reporters that the president had always intended to delay the sweeping tax cuts he announced last week. "That's been his strategy all along," Besset said.

On April 2, President Donald Trump announced a basic tariff of 10% on imported goods from more than 180 countries. However, a group of about 90 countries will be subject to reciprocal tariffs, effective April 9. The enhanced tariffs range from 11% to 50%. Financial markets have been in turmoil since Trump announced the tax plan.