Trump suspends tariffs on China for 90 days, raises them to 125%

US President Donald Trump announced today that he had authorized a 90-day temporary suspension of his tariff plan, but also raised the tariff rate on China to 125%, effective immediately, from 104%. Trump added that he had "authorized a 90-day suspension and a significant reduction in the reciprocal tariff during that period, by 10%, effective immediately." The US president indicated that he had decided to suspend retaliatory tariffs for 90 days on countries that did not respond to the US tariffs, while increasing tariffs on China, which announced further retaliatory measures. Trump acknowledged that people were feeling some fear about the tariffs, reiterating his belief that trade agreements could eventually be reached with many countries, including China. He said, "China wants to make a deal. They just don't know how to do it. President Xi Jinping is a very proud man. They don't know how to do it, but they will find a solution." In this context, US Treasury Secretary Scott Besant said today that he believes the Trump administration can reach agreements on tariffs with US allies. This comes as Besant prepares to lead negotiations with more than 70 countries in the coming weeks, warning that moves to get closer to China could backfire. During an American Bankers Association conference in Washington, Besant said he will play a key negotiating role in the tariff negotiations announced by Trump.