Donald Trump has paused his so-called “reciprocal” tariffs on most of America’s trading partners for 90 days – while increasing those on China to 125%.
However, the S&P 500 stock index jumped 9.5% and global markets bounced back following Mr Trump’s announcement on Wednesday that the increased tariffs on nearly all trading partners would now be paused.
In a post on his Truth Social platform, Mr Trump said the “90-day pause” was for the “more than 75 countries” who had not retaliated against his tariffs “in any way”.
He added that during this period they would still have to pay a “substantially lowered” 10% tariff, which is “effective immediately”.
It is lower than the 20% tariff that Mr Trump had set for goods from the European Union, 24% on imports from Japan and 25% on products from South Korea.
The UK was already going to face a blanket 10% tariff under the new system.
Mr Trump said the increased 125% tariff on imported goods from China was “effective immediately”.
He added: “At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable.”
What’s in Trump’s tariff pause?
Here’s what Donald Trump’s tariff pause entails:
‘Reciprocal’ tariffs on hold
• Higher tariffs that took effect today on 57 trading partners will be paused for 90 days
• These include the EU, Japan and South Korea, all of which will face a baseline 10% duty instead
• Countries that already had a 10% levy imposed since last week – such as the UK – aren’t affected by the pause
China tariffs increased
• Trump imposed a higher 125% tariff on China
• That’s in addition to levies he imposed during his first term
• China had hit the US with 84% tariff earlier today, following tit-for-tat escalations
No change for Canada or Mexico
• Canadian and Mexican goods will remain subject to 25% fentanyl-related tariffs if they don’t comply with the US-Mexico-Canada trade agreement’s rules of origin
• Compliant goods are exempt
Car and metal tariffs remain
• Trump’s pause doesn’t apply to the 25% tariffs he levied on steel and aluminium in March and on cars (autos) on 3 April
• This 25% tariff on car parts does not come into effect until 3 May
Sectors at risk
• Copper, lumber, semiconductors, pharmaceuticals and critical minerals are expected to be subject to separate tariffs, in the same way autos are
Hours after Mr Trump announced the pause on tariffs for most countries, a White House official clarified that this did not apply to the 25% duties imposed on some US imports from Mexico and Canada.
The tariffs were first announced in February and Mexico and Canada were not included in the “Liberation Day” announcements.
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It meant tariffs of 84% would be enforced on US goods – up from the 34% China had previously planned.
Image: Mr Trump spoke to reporters in the Oval Office. Pic: Reuters
China ‘want to make a deal’
Asked why he posted “BE COOL” on Truth Social hours before announcing his tariff pause, Mr Trump told reporters at the White House: “I thought that people were jumping a little bit out of line.”
“They were getting yippy, you know, were getting a little bit yippy, a little bit afraid,” he added.
Mr Trump continued: “China wants to make a deal, they just don’t know how to go about it.
“[They’re] quite the proud people, and President Xi is a proud man. I know him very well, and they don’t know quite how to go about it, but they’ll figure it out.
“They’re in the process of figuring out, but they want to make a deal.”
White House press secretary Karoline Leavitt said the walk back was part of a grand negotiating strategy by Mr Trump.
“President Trump created maximum negotiating leverage for himself,” she said, adding that the news media “clearly failed to see what President Trump is doing here”.
US Treasury Secretary Scott Bessent also insisted Mr Trump had strengthened his hand through his tariffs.
“President Trump created maximum negotiating leverage for himself,” he said.
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Mr Bessent said Mr Trump decided to raise tariffs on China because Beijing hadn’t reached out to the US and instead increased its own levies on US goods.
Downing Street said that the UK will “coolly and calmly” continue its negotiations with the US.
A Number 10 spokeswoman said: “A trade war is in nobody’s interests. We don’t want any tariffs at all, so for jobs and livelihoods across the UK, we will coolly and calmly continue to negotiate in Britain’s interests.”
Disgraced British socialite Ghislaine Maxwell could use “government misconduct” to challenge her imprisonment, her family has claimed.
The 63-year-old, who was jailed in 2022 for luring young girls to massage rooms for Jeffrey Epstein to abuse, is currently serving a 20-year prison sentence.
Maxwell’s family have frequently claimed she “did not receive a fair trial”, but legal appeals against her sex trafficking convictions have been rejected by the courts.
The latest challenge from the Maxwell family comes as President Donald Trump faces questions over whether or not he will order the release of the so-called Epstein “client list”, following a backlash from Republican loyalists who have called for any list to be made public.
Image: Ghislaine Maxwell. Pic: US Department of Justice
The family argue that Maxwell should have been protected under an agreement Epstein had entered with the US Department of Justice in 2007, which agreed not to prosecute any of his co-conspirators.
During her trial in 2021, Maxwell was described as “dangerous” by prosecutors, who told jurors about how she would entice vulnerable girls to go to Epstein’s properties for him to sexually abuse.
In a statement, her family said: “Our sister Ghislaine did not receive a fair trial.
“Her legal team continues to fight her case in the courts and will file its reply in short order to the government’s opposition in the US Supreme Court.”
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20:18
Is Trump in a corner over Epstein?
David Oscar Markus, one of her lawyers, said in the statement released by her family: “I’d be surprised if President Trump knew his lawyers were asking the Supreme Court to let the government break a deal.
“He’s the ultimate dealmaker and I’m sure he’d agree that when the United States gives its word, it should keep it.
“With all the talk about who’s being prosecuted and who isn’t, it’s especially unfair that Ghislaine Maxwell remains in prison based on a promise the US government made and broke.’
“These are sentiments with which we profoundly concur.”
Epstein, 66, was found dead in his cell at a Manhattan federal jail in August 2019 as he awaited trial on sex trafficking charges. His death was ruled a suicide.
The trial of a dentist accused of murdering his wife by poisoning her protein shakes has begun in the US state of Colorado.
James Craig denies using cyanide and tetrahydrozoline, an ingredient in over-the-counter eye drops, to kill Angela Craig in a suburb of Denver.
During the trial’s opening statements on Tuesday, prosecutors claimed the 47-year-old was having an affair with another dentist, had financial difficulties and may have been motivated by the payout from his wife’s life insurance.
Image: Angela and James Craig with their six children. Pic: NBC
Assistant District Attorney Ryan Brackley told the jury at Arapahoe District Court that the 43-year-old victim – who had six children with her husband – had been suffering worsening symptoms including dizziness, vomiting and fainting.
She died in March 2023 during her third trip to the hospital that month.
Mr Brackley accused Craig of poisoning her protein shakes – then giving his wife a final dose of poison while she was in hospital, and said: “He went in that [hospital] room to murder her, to deliberately and intentionally end her life with a fatal dose of cyanide … She spends the next three days dying.”
Craig, who shook his head at times during the prosecution’s opening statement, has pleaded not guilty to several charges, including first-degree murder, solicitation to commit murder and solicitation to commit perjury.
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Prosecutors said Craig had tried to make it appear his wife of 23 years had killed herself. His internet history showed he had searched for “how to make a murder look like a heart attack” and “is arsenic detectable in an autopsy”.
In an argument, captured on home surveillance video, his wife also accused him of suggesting to hospital staff that she was suicidal.
Image: Ryan Brackley claimed James Craig administered poison to his wife while she was in hospital. Pic: Denver Gazette/ AP
After Craig’s arrest in 2023, prosecutors alleged that he had offered a fellow prison inmate $20,000 (£14,993) to kill the case’s lead investigator and offered someone else $20,000 to find people to falsely testify that Angela Craig planned to die by suicide.
Craig’s attorney, Ashley Whitham, told the jury to consider the credibility of those witnesses, calling some “jailhouse snitches”.
Ms Whitham argued that the evidence didn’t show that he poisoned her, instead seeming to suggest she may have taken her own life.
Image: Ashley Whitham, defending Craig, argued that the evidence didn’t show that he poisoned his wife. Pic: Denver Gazette/AP
She described Angela Craig as “broken”, partly by Craig’s infidelity and her desire to stay married, since they were part of The Church of Jesus Christ and Latter-day Saints.
Hospital staff had said Craig had been caring and “doting” while Angela Craig was in the hospital, said Whitham.
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The defence argued prosecutors had overdramatised Craig’s financial problems and dismissed the prosecution’s suggestion that Craig was motivated to kill because of an affair he was having with a fellow dentist from Texas.
“That’s simply not the case,” Whitham said, adding that Craig had many affairs over the years that his wife knew about. “He was candid with Angela that he had been cheating.”
Mr Trump is expected to travel to Scotland in the coming weeks to visit his golf courses ahead of an official state visit in September.
“We’re going to be meeting with the British prime minister, very respectful, and we are going to have a meeting with him, probably in Aberdeen, and we’re going to do a lot of different things.
“We’re going to also refine the trade deal that we’ve made.
“So we’ll be meeting mostly […] at probably one of my properties, or maybe not, depending on what happens, but we’ll be in Aberdeen, in Scotland, meeting with the prime minister.”
Image: Donald Trump speaks to reporters outside the White House. Pic: Reuters
The UK and US signed a trade deal earlier this year that reduced car and aerospace tariffs, but questions have remained about a promise from Washington to slash steel tariffs.
In May, the White House said it would exempt the UK from plans for a 25% tariff on global steel imports but that is yet to be ratified and the levy has since been doubled on all other countries.
Mr Trump had insisted that unless Britain could finalise the details of a metals trade deal with the US by 9 July, when wider “Liberation Day” tariff pauses were expected to expire, he would slap the UK with a 50% rate as well.
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2:49
Who will be positively impacted by the UK-US trade deal?
However that pause was extended until 1 August, with the US president saying nations would instead get letters informing them of his plans.
Downing Street is still hoping it can secure 0% tariffs on steel.
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On Tuesday, a Downing Street spokesperson played down the significance of the meeting in Scotland, stressing it was a private trip so it “will not be a formal bilateral”.
Since taking office in January, Mr Trump has imposed tariffs on countries across the world in a bid to boost domestic production and address trade deficits.
As well as sector specific tariffs, there is a baseline tariff of 10% for most other imports, though some countries face higher rates.
The UK was the first to hash out a deal on exemptions after a successful charm offensive by Sir Keir.
Mr Trump has praised the PM, telling the BBC earlier on Tuesday: “I really like the prime minister a lot, even though he’s a liberal.”
There are also plans for Scottish First Minister John Swinney to meet Mr Trump during his trip.
It will be followed by the official state visit between 17-19 September, when Mr Trump will be hosted by the King and Queen at Windsor Castle and accompanied by his wife Melania.
It will be Mr Trump’s second state visit to the UK, having previously been hosted during his first term in 2019.