'Do not retaliate, you will be rewarded': White House after Trump hits 90-day pause on reciprocal tariffs on most nations

In a dramatic U-turn that sent shockwaves through global markets, President Donald Trump on Wednesday announced a 90-day suspension of most new tariffs—easing pressure on dozens of countries while simultaneously increasing penalties on China.

The surprise move followed a tumultuous period of financial losses and investor panic, coming just one day after broad tariffs had taken effect. Within hours of the announcement, global stock markets rebounded. The S&P 500 rose by more than nine per cent, fuelling a wave of optimism across financial markets worldwide.

The White House quickly framed the decision as part of a larger strategic manoeuvre, posting on X: “DO NOT RETALIATE AND YOU WILL BE REWARDED,” alongside footage of Treasury Secretary Scott Bessent speaking to reporters outside the West Wing.

DO NOT RETALIATE AND YOU WILL BE REWARDED

— The White House (@WhiteHouse) April 9, 2025

Negotiation over retaliation

“As I said here just a week ago: don’t retaliate, and you’ll be rewarded,” Bessent stated. “President Trump held his ground. That took great courage—and now, more than seventy-five countries have come forward to begin talks.”

Bessent outlined that countries opting to negotiate would benefit from a reduced ten per cent baseline tariff during the 90-day window. China, however, would face a punitive increase to one hundred and twenty-five per cent.

“Every country that wants to come to the table—we’re listening,” he added. “Those who engage in good faith will see lower tariffs. China, by choosing escalation, will face higher penalties.”

President Trump echoed this message in a Truth Social post: “I have authorised a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of ten per cent, also effective immediately.”

While most countries caught a temporary reprieve, China’s hike underscored the continued friction between the world’s two largest economies.

Market pressures and strategic timing

Bessent insisted the change was planned, not reactive. “This is part of the President’s long-term strategy,” he said. “He anticipated China’s moves and forced them into a difficult position, revealing their combative stance to the world.”

Earlier in the day, global markets had been in turmoil. Trillions of dollars in equity were wiped out, and bond yields surged as investors sought safe havens. By early afternoon, Trump appeared to acknowledge the strain, citing outreach from over seventy-five countries and a lack of retaliatory action as justification for the pause.

Speaking to reporters, Trump admitted that concerns about the markets played a role. “People were getting nervous,” he said. “The bond market was shaky, interest rates were climbing. But I kept an eye on it—it looks beautiful now.”

He said the idea for the tariff freeze had been considered for days, but it came together early that morning. When questioned about why his aides had insisted tariffs were non-negotiable, Trump remarked, “Sometimes it’s not a negotiation—until it is.”

Mixed approach for allies

The new ten per cent baseline now broadly replaces higher previous rates, including twenty per cent for European Union goods, twenty-four per cent on Japanese imports, and twenty-five per cent on products from South Korea. However, Canada and Mexico remain subject to tariffs of up to twenty-five per cent, under a separate directive aimed at combatting fentanyl smuggling.

Bessent said upcoming negotiations would be “bespoke”, with country-specific terms and timelines. He maintained that the pause was a response to diplomatic outreach rather than market panic, although Trump’s comments suggested both factors were influential.

“The only certainty we can offer is that the United States will negotiate in good faith,” Bessent concluded. “We trust our allies will do the same.”

For China, however, the message remains clear: collaborate or face increasing isolation. Trump’s broader strategy may have shifted gears, but his stance on Beijing has only hardened.