Trump tariffs updates: President decided to pull reciprocal tariffs 'this morning'

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Last updated: Thursday, April 10, 2025 2:00AM GMT
Trump announces 90-day pause on most reciprocal tariffs
In a dramatic move Wednesday, President Donald Trump says he has authorized a 90-day pause in the higher tariffs for most countries he announced last week - while maintaining a 10% baseline tariff across the board.

In a dramatic move Wednesday, President Donald Trump says he has authorized a 90-day pause in the higher tariffs for most countries he announced last week - while maintaining a 10% baseline tariff across the board.

Treasury Secretary Scott Bessent told reporters, "It took great courage, great courage for him to stay the course until this moment," reiterating what he mentioned a week ago, "do not retaliate, and you will be rewarded."

The pause would not apply to China - on which Trump said he was raising the U.S. tariff to 125% because, unlike other countries, Bessent said, it was unwilling to make a deal.

Apr 09, 2025, 8:11 PM

Dow closes up 2,962 points in market rally as Trump pauses some tariffs

U.S. stocks closed with major gains on Wednesday after President Donald Trump announced a 90-day pause on some tariffs.

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, April 9, 2025.
Traders work on the floor at the New York Stock Exchange in New York, Wednesday, April 9, 2025.

The Dow Jones Industrial Average climbed 2,962 points, or 7.8%, marking the index's best day since 2020.

The S&P 500 jumped 9.5%, while the tech-heavy Nasdaq soared 12.1%.

Click here to read the latest stock market news.

ABCNews logo
Apr 09, 2025, 6:08 PM

Trump announces 90-day 10% reciprocal tariff rate and increased 125% tariff rate on China

President Donald Trump has announced that countries subject to reciprocal tariffs will have a lowered 10% rate for 90 days, according to a new social media post.

This does not apply to China, which Trump says is now subject to a 125% tariff rate following their retaliatory tariff announced earlier Wednesday.

President Donald Trump speaks during an event on energy production in the East Room of the White House, Tuesday, April 8, 2025, in Washington.
President Donald Trump speaks during an event on energy production in the East Room of the White House, Tuesday, April 8, 2025, in Washington.

"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 wrote.

ByMary Bruce and Molly Nagle ABCNews logo
Apr 09, 2025, 8:53 PM GMT

'What does that mean for tomorrow?' small business owners react to tariff pause

Chris Farley, the owner of Pacers Running in Alexandria, Virginia, shrugged his shoulders and shook his head when he learned about the news of President Donald Trump's change in his tariff plan.

"This is the world we're in now. What I was hoping for was some predictability for life and work, and this is just so challenging. That's great news-- maybe I should react that's great news. But what does that mean for tomorrow? Like I just-- it's hard to understand what's actually happening," he said.

Farley said he and the vendors he works with are struggling to figure out the best prices and margins to operate with.

"I am measured in my responses now. I'm really going to stay medium on any sort of news that comes out," he said.

President Donald Trump prepares to sign executive orders as others watch in the Oval Office, April, 9, 2025 in Washington.
President Donald Trump prepares to sign executive orders as others watch in the Oval Office, April, 9, 2025 in Washington.

Farley said he's worried how much his customers will be able to bear, telling us he's been told one shoe he sells could immediately jump from $165 to $220.

"I can't sell this for $220" he said,

When asked for his message to the administration, prior to Trump's announcement, Farley joked, "First off, I'd like everybody to go for a run. I think you'll get a level head."

"I would say to the folks in charge that these are real impacts on real people, real people with families that are hardworking Americans, who have running stores or have small businesses. And these are real impacts that we're juggling," he added.

ByZunaira Zaki ABCNews logo
Apr 09, 2025, 8:39 PM GMT

Goldman Sachs lowers recession odds following tariff pause

Goldman Sachs economists are reverting to a baseline forecast of no recession following President Donald Trump's announcement of a 90-day pause on reciprocal tariffs for most countries. The economists still predict a 45% possibility of recession.

Apr 09, 2025, 8:11 PM GMT

Dow closes up 2,962 points in market rally as Trump pauses some tariffs

U.S. stocks closed with major gains on Wednesday after President Donald Trump announced a 90-day pause on some tariffs.

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, April 9, 2025.
Traders work on the floor at the New York Stock Exchange in New York, Wednesday, April 9, 2025.

The Dow Jones Industrial Average climbed 2,962 points, or 7.8%, marking the index's best day since 2020.

The S&P 500 jumped 9.5%, while the tech-heavy Nasdaq soared 12.1%.

Click here to read the latest stock market news.

ABCNews logo
Apr 09, 2025, 7:46 PM GMT

Trump pressed on apparent reversal on tariff pause

President Donald Trump told ABC News Chief White House Correspondent Mary Bruce on Monday that he was "not looking at" a pause on tariffs.

Asked about the apparent reversal and his credibility by another reporter on Wednesday, Trump said "you have to have flexibility."

U.S. President Donald Trump speaks to the media during a photo opportunity at the South Portico of the White House on April 09, 2025 in Washington, DC.
U.S. President Donald Trump speaks to the media during a photo opportunity at the South Portico of the White House on April 09, 2025 in Washington, DC.

"I could say, here's a wall and I'm going to go through that wall. I'm going to go through it no matter what. Keep going. And you can't go through the wall. Sometimes you have to be able to go under the wall, around the wall or over the wall," Trump said.

"But over the last few days it looked pretty glum," he acknowledged, before quickly touting the uptick in the markets after his pause announcement.