Trump tariffs live updates: US-China trade war reality sets in amid wider 'reciprocal' pause

Hours after the Treasury secretary defended Trump’s “Liberation Day” tariffs, the president backed a 90-day pause — an idea pushed by hedge fund billionaire Bill Ackman, who warned of a “self-induced, economic nuclear winter.” Earlier that day, Scott Bessent had declared it was “Main Street’s turn” after years of Wall Street dominance. Then, Wall Street logged its best day in 16 years.
Bloomberg News reports:
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As trade tensions escalate between the US and China, specific manifestations of rebalancing and retaliation are arising.
A couple of Bloomberg reports from Thursday morning:
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“Whose throat do I get to choke if this proves to be wrong?” Senator Thom Tillis of North Carolina asked Tuesday, highlighting the growing frustration among Republicans over Trump’s tariffs.
Yahoo Finance’s Ben Werschkul examines how many GOP lawmakers are struggling to grasp the logic behind the president’s sweeping trade policies.
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The EU will delay its retaliatory tariffs on US goods for 90 days, European Commission President Ursula von der Leyen said on Thursday.
The move matches the length of President Trump’s pause in implementing like-for-like tariffs on several countries.
“We took note of the announcement by President Trump,” von der Leyen said in a statement. “We want to give negotiations a chance.”
“If negotiations are not satisfactory, our countermeasures will kick in,” she added, noting that work on the countermeasures is still in process and that all options are still on the table.
As my colleague Ben Wershkul noted, Trump pivoted on trade again on Wednesday, saying he would authorize a 90-day pause on his reciprocal tariff plans for all countries except China.
That means EU goods will face lower US duties, going from a rate of 20% to the 10% baseline that went into effect on April 5. The easing came even after the bloc approved its counter-tariffs on $23 billion in US goods earlier on Wednesday, but Trump said the EU will get a reprieve because those levies hadn’t gone into effect yet.
As reported by the Financial Times on Thursday, US consumers are experiencing significant price hikes on bicycles due to President Donald Trump’s tariffs, which are severely impacting an industry reliant on Chinese manufacturing.
The Financial Times reports:
US container imports grew 11% in March compared to last year, maintaining strong monthly gains. However, trade executives warned that President Donald Trump’s escalating tariffs are clouding the outlook for the remainder of the year.
Reuters reports:
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Apple (AAPL) reportedly flew around 600 tons of iPhones—up to 1.5 million units—from India to the U.S., after ramping up production there to get ahead of President Trump’s new tariffs, sources told Reuters.
Reuters reports:
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European Commission President Ursula von der Leyen on Thursday praised President Donald Trump’s move to pause most US tariffs but offered no comment on whether the EU would move forward with its own response.
AP reports:
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President Trump singled out China on Wednesday, granting a tariff reprieve to every other nation while raising across-the-board tariffs on China to 125%.
Trump said he raised the tariffs on China due to its “lack of respect” and posted on Truth Social, “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”
This trade action reveals China to be the chief adversary the Trump administration sees when it comes to trade.
As the timeline below outlines, the US and China have been engaged in a tit-for-tat trade war since Trump took office that has targeted small-value imports, energy, agricultural products, and more.
President Trump has authorized a 90-day pause on his reciprocal tariff plans for all countries except China. However, the 10% baseline duties that went into effect last weekend will remain in place for all countries ex-China, according to a White House official.
China: US tariffs on China have been increased to a cumulative rate of 125%. Trump is also ending the de minimis loophole for cheap products from China and Hong Kong starting May 2.
European Union: Although the EU announced retaliatory measures, those tariffs have not gone into effect yet. As a result, the 20% reciprocal tariffs on the EU have been paused, and EU goods bound for the US will be taxed at the 10% baseline rate.
Mexico and Canada: Tariffs on the US’s neighbors also remain unchanged. Items compliant with the United States-Mexico-Canada (USMCA) agreement can cross the border tariff-free, while non-compliant imports will be tariffed at 25%, with the exception of energy and potash, which are tariffed at 10%. Canada and Mexico were exempted from the 10% baseline tariff on April 5 and will continue to be exempt from that duty.
Metal, auto sectors: Previous tariffs on foreign imports of steel and aluminum (tariffed at a rate of 25%) and autos (also 25%) were unchanged by the president’s policy update.
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On Wednesday, President Trump finally gave markets what they had been seeking since Trump’s “Liberation Day” kicked trade tensions into another gear: a stay on tariffs.
Markets were jubilant at the news, which prompted a historic rally in stocks. The benchmark S&P 500 (^GSPC), which started the day perilously close to a bear market, soared 9.5%. The Dow Jones Industrial Average (^DJI) gained roughly 3,000 points, ending the day over 7.8% higher. And the tech-heavy Nasdaq Composite (^IXIC) exploded 12% higher.
As of the close, the S&P 500 had its best day since 2008, while the Nasdaq had its best day since 2001.
Asked about the pause later on Wednesday, Trump nodded to what he called “yippy” markets as a factor in his decision. “I thought people were jumping a bit out of line,” he said. He also seemed to revel in the market’s wild upward swing, calling it the “biggest day in financial history.”
Read more about Wednesday’s wild tariff-relief rally.
President Trump, asked about his 90-day tariff pause on Wednesday, hinted that a “yippy” stock market was a factor.
“Over the last few days, it looked pretty glum,” he said, adding, “They were getting a little bit afraid.”
He also nodded to the bond market, which has experienced volatility in recent days as Treasury yields have surged.
“The bond market is very tricky. I was watching it. But if you look at it now, it’s beautiful,” he said, later adding, “Last night people were getting a little queasy.”
Just hours before, members of the Trump administration, including Treasury Secretary Scott Bessent, had painted the action largely as part of the plan.
“This was his strategy all along,” Bessent said.
Bill Ackman asked Donald Trump to pause his administration’s tariff plans for a length of time.
On Wednesday afternoon, that’s what the president did.
“Thank you on behalf of all Americans,” Ackman said in a post on X following the announcement from the president’s Truth Social account.
President Trump stunned market watchers with a social media post around 1 p.m. ET Wednesday authorizing a 90-day pause on his reciprocal tariff plans while keeping the 10% duties in place on most of the world that went into effect last weekend.
The president also announced he would unilaterally raise the rate on China to 125% because of “the lack of respect” that China has shown. The temporary reprieve from the massive tariffs was enough to send the S&P 500 index up more than 8% in intraday trading.
In a press conference with reporters, US Treasury Secretary Scott Bessent said Trump’s decision was not influenced by the major rout seen across markets after the initial unveiling of his sweeping tariff policy a week ago, saying that “this was his strategy all along.”
The 90-day pause allows the US to create a “bespoke” solution with over 75 countries that have engaged with the US for trade talks. “This was brilliantly executed by Donald Trump. Textbook, Art of the Deal,” Ackman said in a subsequent post.
“We now understand who are our preferred trading partners, and who the problems are,” Ackman said in a later post. “This is the perfect setup for trade negotiations over the next 90 days.”
A billionaire hedge fund manager who runs Pershing Square Holdings (PSHZF) and backed Trump during the 2024 campaign, Ackman started a public campaign to slow down the rollout of President Trump’s tariffs beginning Sunday.
In a series of posts on X, he called the April 9 launch of “reciprocal” tariffs a “mistake,” asked for a 90-day pause, and warned of “a self-induced, economic nuclear winter.”
Several other billionaires this week offered warnings of their own as the magnitude of what Trump proposed became apparent, with heightened odds of a recession. JPMorgan Chase CEO Jamie Dimon said Wednesday morning that the chance of a US recession is a “likely outcome,” warning that a negative market reaction to trade policies “could get worse if we don’t make some progress.”
Stocks are indeed soaring on news of President Trump backing off on most reciprocal tariffs.
The benchmark S&P 500 (^GSPC) roared up over 7%, while the tech-heavy Nasdaq Composite (^IXIC) rallied over 8%. The Dow Jones Industrial Average (^DJI) was up over 6%, or over 2,000 points. All three of the major averages had previously been lower at some point in the session.
Here’s a look at the sector action in the aftermath of Trump’s Truth Social post announcing the pause (and an escalation in the tit-for-tat trade war with China).
Check out our markets live blog for the latest on how markets are reacting.
Stocks are ripping higher this afternoon on the Trump tariff pause!
But hat tip to the economics team at Goldman Sachs for splashing some cold water onto the rears of the market bulls.
Chief economist Jan Hatzius now says a US recession is his baseline scenario. Keep in mind, Hatzius just raised his recession risk probability to 45% on Monday.
“We now expect the FOMC to cut by around 200 basis points this year (vs. 75 basis points in our previous non-recession baseline), starting with a 50 basis point cut in June,” added Hatzius.
Here’s a closer look at the sectors the European Union is targeting with its counter-tariffs, courtesy of Yahoo Finance’s Brent Sanchez.
EU nations approved the measures in retaliation for the 25% duties President Trump imposed on foreign imports of steel and aluminum.
“These countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome,” the European Commission said in a statement.
President Trump announced that he is raising the tariffs on China to a total of 125%. For most other countries, Trump said he is instituting a 90-day pause on reciprocal tariffs.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump posted on Truth Social.
Trump added: “Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States … and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
On Wednesday, China said it would raise its tariff on US goods to 84%, and the EU voted to adopt 25% tariffs on a range of US goods worth roughly $23 billion after new US tariffs on imports kicked in.
President Trump has touted a revival in US manufacturing and a necessary shock to the US economic policy as benefits of his tariff “medicine.”
Yet, as Yahoo Finance’s Rick Newman details, there are many instances in which Trump’s tariffs will raise prices and impose a net loss on American consumers. Just take a look at sneakers.
Rick writes:
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Yahoo Finance’s David Hollerith reports:
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Trump tariffs live updates: US-China trade war reality sets in amid wider ‘reciprocal’ pause

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