Trump limits tariffs on most nations for 90 days, raises taxes on Chinese imports

WASHINGTON (AP) — Facing a global market meltdown, President Donald Trump on Wednesday abruptly backed off his tariffs on most nations for 90 days even as he further jacked up the tax rate on Chinese imports to 125%.

It was seemingly an attempt to narrow what had been an unprecedented trade war between the U.S. and most of the world to a showdown between the U.S. and China. The S&P 500 stock index jumped 9.5% after the announcement, but the drama over Trump's tariffs is far from over as the administration prepares to engage in country-by-country negotiations. In the meantime, countries subject to the pause will now be tariffed at 10%.

The president hit pause in the face of intense pressure created by volatile financial markets that had been pushing Trump to reconsider his tariffs, even as some administration officials insisted the his reversal had always been the plan.

As stocks and bonds sold off, voters were watching their retirement savings dwindle and businesses warned of worse than expected sales and rising prices, all a possible gut punch to a country that sent Trump back to the White House last year on the promise of combatting inflation.

The global economy appeared to be in open rebellion against Trump’s tariffs as they took effect early Wednesday, a signal that the U.S. president was not immune from market pressures. By early afternoon, Trump posted on Truth Social that because more than 75 countries had reached out to the U.S. government for trade talks and had not retaliated in meaningful ways, “I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”

Trump later told reporters that he pulled back on many global tariffs — but not on China — because people were “yippy” and “afraid" due to the stock market declines. He added that while he expected to reach deals, “nothing’s over yet.”

The president said he had been monitoring the bond market and that people were “getting a little queasy" as bond prices had fallen and interest rates had increased in a vote of no confidence by investors in Trump's previous tariff plans.

“The bond market is very tricky,” Trump said. “I was watching it. But if you look at it now, it’s beautiful.”

The president later said he'd been thinking about his tariff pause over the past few days, but he said it “came together early this morning, fairly early this morning.”

Asked why White House aides had been insisting for weeks that the tariffs were not part of a negotiation, Trump said: “A lot of times, it’s not a negotiation until it is.”

The 10% tariff was the baseline rate for most nations that went into effect on Saturday. It's meaningfully lower than the 20% tariff that Trump had set for goods from the European Union, 24% on imports from Japan and 25% on products from South Korea. Still, 10% represents an increase in the tariffs previously charged by the U.S. government. Canada and Mexico would continue to be tariffed by as much as 25% due to a separate directive by Trump to ostensibly stop fentanyl smuggling.

Treasury Secretary Scott Bessent said that the negotiations with individual countries would be “bespoke,” meaning that the next 90 days would involve talks on a flurry of potential deals. Bessent, a former hedge fund manager, told reporters that the pause was because of other countries seeking talks rather than brutal selloffs in the financial markets, a statement later contradicted by the president.

“The only certainty we can provide is that the U.S. is going to negotiate in good faith, and we assume that our allies will too,” Bessent said.

The treasury secretary said he and Trump “had a long talk on Sunday, and this was his strategy all along” and that the president had “goaded China into a bad position.”

Commerce Secretary Howard Lutnick later seemed to contradict the president's account by saying it was “definitively” not the markets that caused Trump to pause the tariffs, saying that requests by other nations to negotiate prompted the decision.

Prior to the reversal, business executives were warning of a potential recession caused by his policies, some of the top U.S. trading partners were retaliating with their own import taxes and the stock market was quivering after days of decline.

White House press secretary Karoline Leavitt said the walk back was part of Trump’s negotiating strategy.

She said the news media "clearly failed to see what President Trump is doing here. You tried to say that the rest of the world would be moved closer to China, when in fact, we’ve seen the opposite effect. The entire world is calling the United States of America, not China, because they need our markets.”

The head of the World Trade Organization, Ngozi Okonjo-Iweala, said the trade war between the U.S. and China could “could severely damage the global economic outlook" and warned of “potential fragmentation of global trade along geopolitical lines.”

Market turmoil had been building for weeks ahead of Trump's move, with the president at times suggesting the import taxes would stay in place while also saying that they could be subject to negotiations.

Particularly worrisome was that U.S. government debt had lost some of its luster with investors, who usually treat Treasury notes as a safe haven when there's economic turbulence. Government bond prices had been falling, pushing up the interest rate on the 10-year U.S. Treasury note to 4.45%. That rate eased after Trump's reversal.

Gennadiy Goldberg, head of U.S. rates strategy at TD Securities, said before the announcement that markets wanted to see a truce in the trade disputes.

“Markets more broadly, not just the Treasury market, are looking for signs that a trade de-escalation is coming," he said. "Absent any de-escalation, it’s going to be difficult for markets to stabilize.”

John Canavan, lead analyst at the consultancy Oxford Economics, noted that while Trump said he changed course due to possible negotiations, he had previously indicated that the tariffs would stay in place.

“There have been very mixed messages on whether there would be negotiations," Canavan said. "Given what's been going on with the markets, he realized the safest thing to do is negotiate and put things on pause.”

The whipsaw-like nature of Wednesday could be seen in the social media posts of Bill Ackman, a hedge fund billionaire and Trump supporter.

“Our stock market is down,” Ackman posted on X. “Bond yields are up and the dollar is declining. These are not the markers of successful policy.”

Ackman repeated his call for a 90-day pause in the post. When Trump embraced that idea several hours later, an ebullient Ackman posted that Trump had “brilliantly executed” his plan and it was “Textbook, Art of the Deal,” a reference to Trump's bestselling 1987 book.

Presidents often receive undue credit or blame for the state of the U.S. economy as their time in the White House is subject to financial and geopolitical forces beyond their direct control.

But by unilaterally imposing tariffs, Trump has exerted extraordinary influence over the flow of commerce, creating political risks and pulling the market in different directions based on his remarks and social media posts. There still appear to be 25% tariffs on autos, steel and aluminum, with more imports, including pharmaceutical drugs, set to be tariffed in the weeks ahead.

The tariffs frenzy of recent weeks has taken its toll on businesses and individuals alike.

On CNBC, Delta Air Lines CEO Ed Bastian said the administration was being less strategic than it was during Trump's first term. His company had in January projected it would have its best financial year in history, only to scrap its expectations for 2025 due to the economic uncertainty.

“Trying to do it all at the same time has created chaos in terms of being able to make plans,” he said, noting that demand for air travel has weakened.

Before Trump's reversal, economic forecasters said his second term has had a series of negative and cascading impacts that could put the country into a downturn.

“Simultaneous shocks to consumer sentiment, corporate confidence, trade, financial markets as well as to prices, new orders and the labor market will tip the economy into recession in the current quarter,” said Joe Brusuelas, chief economist at the consultancy RSM.

Bessent has previously said it could take months to strike deals with countries on tariff rates. But in a Wednesday morning appearance on “Mornings with Maria,” Bessent said the economy would “be back to firing on all cylinders” at a point in the “not too distant future.”

He said there has been an "overwhelming" response by “the countries who want to come and sit at the table rather than escalate.” Bessent mentioned Japan, South Korea, and India. "I will note that they are all around China. We have Vietnam coming today,” he said.

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Associated Press writer Michelle L. Price contributed to this report.

A truck carrying a Hede (Hong Kong) International Shipping Co., Ltd., container moves along the Port of Los Angeles Wednesday, April 9, 2025 in Los Angeles. (AP Photo/Damian Dovarganes)

Commerce Secretary Howard Lutnick speaks to reporters outside the West Wing of the White House, Wednesday, April 9, 2025, in Washington. (AP Photo/Jacquelyn Martin)

Treasury Secretary Scott Bessent speaks to reporters outside the West Wing of the White House, Wednesday, April 9, 2025, in Washington, with White House press secretary Karoline Leavitt. (AP Photo/Evan Vucci)

Treasury Secretary Scott Bessent and White House press secretary Karoline Leavitt depart after speaking to reporters outside the West Wing of the White House, Wednesday, April 9, 2025, in Washington. (AP Photo/Evan Vucci)

Treasury Secretary Scott Bessent speaks to reporters outside the West Wing of the White House, Wednesday, April 9, 2025, in Washington, with White House press secretary Karoline Leavitt. (AP Photo/Jacquelyn Martin)

John Bowers works on the floor at the New York Stock Exchange in New York, Wednesday, April 9, 2025. (AP Photo/Seth Wenig)

JPMorgan CEO Jamie Dimon, left, is interviewed by Maria Bartiromo on the "Mornings with Maria Bartiromo" program, on the Fox Business Network, in New York Wednesday, April 9, 2025. (AP Photo/Richard Drew)

President Donald Trump speaks at the National Republican Congressional Committee (NRCC) dinner at the National Building Museum in Washington, Tuesday, April 8, 2025. (Pool via AP)

MINNEAPOLIS (AP) — Right after Sunday worship at St. Paul’s-San Pablo Lutheran Church, Juan Carlos Toapanta lay in a lounge chair set up by the altar, needles sticking out of his forehead, wrist and foot for an hourlong acupuncture session.

“Just like the Lord’s light helps emotionally, the body’s pain is treated as well,” said the Ecuadorian construction worker, who suffers from sciatica and has worshipped at the Minneapolis church for about five months. “Everything feels freed, emotionally.”

Founded by Swedish immigrants in the late 19th century, the church is now a predominantly Latino congregation. Like most other churches in the U.S. that serve migrants, it has expanded its humanitarian, financial, legal and pastoral ministries during the Trump administration’s immigration crackdown.

It has also added monthly well-being sessions — at no charge — with acupuncture, Reiki and cupping therapy to ease the stress that uncertainty and fear have sown among the migrant community — including people in the U.S. illegally and U.S.-born citizens in mixed-status families.

“We have to feel well to respond well, not with panic and fear, which leads to nothing good,” said Lizete Vega, who has spearheaded the well-being efforts as the church’s Latino outreach coordinator. “People here feel that they’re protected and can be cared for spiritually, emotionally and physically.”

Faith leaders have increasingly found themselves called to help their congregations with mental health concerns, from chaplains in the U.S. Navy to pastors in the rural heartland.

Some see the need to provide reassurance and well-being as a growing part of their ministry to migrants, even as revised federal immigration guidelines now provide more leeway for enforcement in or near houses of worship.

“It was as if they were able to exhale a big breath,” the Rev. Hierald Osorto said of the 30 congregants who signed up for the first well-being session in March at St. Paul’s, where an outdoor mural features two traditional Swedish Dala horses between the Spanish words “sanación” (healing) and “resiliencia” (resilience).

After last Sunday’s worship, the altar table and Easter lilies were moved to make room for seven acupuncture chairs, arranged in a circle facing the central cross. Three massage tables were set up in front of the pews for the Reiki treatment, where practitioners hold their hands on or near the body’s energy centers.

“To see this space be quite literally a place of healing, in the place where we talk about it right at the altar, it moved me to tears,” Osorto said.

Wellness practitioners and mental health clinicians say anxiety and depression among those they serve in migrant communities have spread and intensified this year.

Already, migrants often arrive with severe trauma from violence they fled in their home countries as well as attacks along cartel-controlled routes to and through the U.S. border.

Women in particular often suffer sexual violence on the journey. For many, the fear that they or someone in their families might be deported is revictimizing. That makes it imperative that “safe places” exist where they can focus on wellness, said Noeline Maldonado, executive director of The Healing Center, which helps domestic and sexual violence victims in Brooklyn, New York.

Sessions that promote grounding and mindfulness are necessary to cope with the stress of both immediate crises as well as long-term unpredictability as immigration policies shift.

“Uncertainty is the biggest thing,” said Cheryl Aguilar, director of Hope Center for Wellness in the Washington, D.C., area, which has partnered with churches to provide mental health programs.

Being in community and cultivating hope is crucial because many people are responding to fear with rising anxiety, traumatic symptoms and isolation, all of which can have lasting consequences, Aguilar added.

“It’s nonstop work, nonstop fear,” said Sarah Howell, a clinical social worker in Houston with more than a decade of experience in migration-related trauma. “Every issue seems bigger.”

Howell said many of her clients in Texas are realizing they can’t live in a state of constant alarm, and the respite that wellness programs can bring becomes essential.

“People feel hopeless, but they have to keep fighting,” said Guadalupe Gonzalez, one of the bilingual Reiki practitioners whose organization, Odigo Wellness, partnered with St. Paul's in Minneapolis to offer the sessions.

She said she had some doubts about offering these healing practices inside a church — a large space with light flooding in and people moving through.

“But the sanctuary has a very nice, very positive energy,” Gonzalez said. “As practitioners we feel a lot of emotions.”

Several congregants who attended last Sunday’s two-hour wellness session said they felt both the energy and the connection between these healing practices and faith.

Martha Dominguez came bouncing down the altar steps after an acupuncture session. Grinning, she said she had never imagined a church would offer these kinds of “benefits.”

“Yes, it helps so much,” said the Mexican immigrant. “It takes the stress away from you.”

Limber Saliero, a roofer from Ecuador who has been worshipping at St. Paul’s for five years, said he had never heard of acupuncture but decided to try it.

“I felt like an energy that was flowing into me,” he said.

Vanessa Arcos tried acupuncture with her sister and her father, while her mother got a Reiki treatment. The family started attending the church the week they arrived in Minnesota from their home state of Guerrero, Mexico, almost a decade ago.

Lying in the lounge chair next to a statue of the Virgin of Guadalupe, Arcos said she overcame her fear of needles and found the treatment relaxing for both muscles and mind.

“It felt very peaceful, very safe,” Arcos said. “It’s important to do little things for yourself.”

Associated Press religion coverage receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content.

Spring blossoms bloom on a tree next to the entrance of St. Paul’s-San Pablo Lutheran Church, a congregation founded by Swedish immigrants in the late 19th century that has started offering wellness programs in its sanctuary as part of its migrant ministry, in Minneapolis, Sunday, April 27, 2025. (AP Photo/Giovanna Dell’Orto)

Congregants of St. Paul’s-San Pablo Lutheran Church receive acupuncture treatments in the sanctuary after worship during a wellness program the church started as part of its migrant ministry, in Minneapolis, Sunday, April 27, 2025. (AP Photo/Giovanna Dell’Orto)

Guadalupe Gonzalez performs a Reiki treatment as Limber Saliero, background right, undergoes an acupuncture session in the sanctuary of St. Paul’s-San Pablo Lutheran Church, which recently added wellness programs as part of its migrant ministry, in Minneapolis, Sunday, April 27, 2025. (AP Photo/Giovanna Dell’Orto)

Martha Dominguez receives an acupuncture treatment in the sanctuary of St. Paul’s-San Pablo Lutheran Church, which recently added wellness sessions as part of its migrant ministry, in Minneapolis, Sunday, April 27, 2025. (AP Photo/Giovanna Dell’Orto)

Juan Carlos Toapanta, foreground, and Martha Dominguez, background, receive acupuncture treatments in the sanctuary of St. Paul’s-San Pablo Lutheran Church, which recently added wellness sessions as part of its migrant ministry, in Minneapolis, Sunday, April 27, 2025. (AP Photo/Giovanna Dell’Orto)

Acupuncturist Kahlyn Keilty-Lucas starts a treatment at St. Paul’s-San Pablo Lutheran Church, which holds wellness sessions after Sunday worship in the sanctuary as part of its migrant ministry, in Minneapolis, Sunday, April 27, 2025. (AP Photo/Giovanna Dell’Orto)

The Rev. Hierald Osorto speaks to the congregation of St. Paul’s-San Pablo Lutheran Church, which holds wellness sessions after Sunday worship in the sanctuary as part of its migrant ministry, in Minneapolis, Sunday, April 27, 2025. (AP Photo/Giovanna Dell’Orto)

Juan Carlos Toapanta receives an acupuncture treatment in the sanctuary of St. Paul’s-San Pablo Lutheran Church, which recently added wellness sessions as part of its migrant ministry, in Minneapolis, Sunday, April 27, 2025. (AP Photo/Giovanna Dell’Orto)

Guadalupe Gonzalez, foreground center, and two other practitioners perform Reiki treatments in the sanctuary of St. Paul’s-San Pablo Lutheran Church, where congregant Lizete Vega, left, helped organize wellness sessions as part of its migrant ministry, in Minneapolis, Sunday, April 27, 2025. (AP Photo/Giovanna Dell’Orto)

Marakah Mancini de León performs a Reiki treatment near a sign in Spanish reading, “Christ is risen,” in the sanctuary of St. Paul’s-San Pablo Lutheran Church, which recently added wellness sessions as part of its migrant ministry, in Minneapolis, Sunday, April 27, 2025. (AP Photo/Giovanna Dell’Orto)