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%.

There have been fears of a global recession and stock markets around the world had plummeted after Mr Trump announced his “Liberation Day” tariffs on Wednesday 2 April.

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.

Tariffs latest: Trump gives reasons for pausing some tariffs

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.”

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.

Hours before the 125% tariff on China was revealed, Beijing said it was increasing tariffs on US goods by 50%.

It meant tariffs of 84% would be enforced on US goods – up from the 34% China had previously planned.

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.”

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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.”

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Hyundai is about to launch a new electric SUV in China. With its big debut coming up, Hyundai just dropped a sneak peek, and it looks like it could be the IONIQ 4. Check it out for yourself in the video below.

Is Hyundai teasing the IONIQ 4?

We caught our first glimpse of the new EV model last month after Beijing Hyundai released a few official “spy” photos.

Despite the camouflage, you can see a few design elements, like a light bar across the front, slim LED headlights, and a closed-off grille. At first, it almost looks like a smaller version of the IONIQ 9, Hyundai’s first three-row electric SUV, but with a much sportier, shaped profile.

Beijing Hyundai released a new teaser for the upcoming electric SUV this week. The video shows “a wave of high-end operations” as the vehicle dances across the snow.

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The video highlights features like real-time torque control, high-speed cornering, and the SUV’s impressive body control while driving around cones.

Hyundai’s new electric SUV is being called “OE” internally, according to The Korean Car Blog, suggesting it could be an IONIQ model.

All other Hyundai IONIQ EV models were also codenamed with an “E” internally, which is raising speculation that this could be the IONIQ 4.

Like most global OEMs, Hyundai is fighting to compete in an intense Chinese EV market, which is dominated by domestic automakers like BYD.

Hyundai opened its first overseas R&D center last year in China to spearhead its comeback. It will work with local suppliers and tech companies to develop EVs designed for Chinese buyers. The new electric SUV is expected to launch in China later this year, followed by three new energy vehicles, including EVs and EREVs.

Beijing Hyundai will release more information on April 16, with the electric SUV set to “challenge the limit of driving performance.”

What do you think of Hyundai’s new electric SUV? Is this the IONIQ 4? Let us know your thoughts in the comments.