• Trump paused higher tariffs on goods from 57 countries, including the EU, Japan, and South Korea, reverting them to a 10 per cent import duty for 90 days to allow for negotiations.
  • Despite pausing tariffs for most countries, Trump raised tariffs on Chinese goods to 125 per cent, continuing his aggressive trade stance against China.
  • While Canada's and Mexico's goods are exempt from new tariffs, the 25 per cent duties on fentanyl-related products remain in place as part of the US-Mexico-Canada trade agreement.

WASHINGTON, April 11 — US President Donald Trump on Wednesday abruptly paused part of his tariff assault on global trading partners, dialing back duty rates on goods from many countries for 90 days to allow room to negotiate lower trade barriers, even as he hiked new tariffs on Chinese goods to 125 per cent.

The move, following a week of market turmoil that has wiped out trillions of dollars in stock values, was the latest course reversal in Trump's hastily rolled out tariff agenda, sowing confusion about its objectives.

Here are key details of Trump's latest move:

'Reciprocal' tariffs paused

The net effect of Trump's move is that many goods from most countries will be subject to a 10 per cent US import tariff for the next 90 days.

Trump's higher reciprocal tariffs imposed on Wednesday for 57 trading partners are paused for 90 days. These partners, which include the European Union, Japan, South Korea and, will instead revert to a 10 per cent duty rate.

"Baseline" 10 per cent tariff rates that took effect on April 5 for most other countries, including Brazil, Australia, Britain and Colombia, will remain in place for the 90-day period.

China tariff raised to 125 per cent

After several tit-for-tat tariff escalations including China's 84 per cent tariff on US goods announced in Beijing on Wednesday, Trump hit back again with higher duties, raising the total new duties imposed since he took office in January to 125 per cent. These are in addition to tariffs he had already imposed on many Chinese goods during his first term.

No change for Canada, Mexico

Trump's tariff announcement last week spared Canada and Mexico, but only because their goods are still subject to 25 per cent fentanyl-related tariffs if they do not comply with the US-Mexico-Canada trade agreement's rules of origin.

These duties remain in place for the moment, with an indefinite exemption for USMCA-compliant goods.

Autos, metals tariffs remain

Trump's pause does not apply to the 25 per cent tariffs that he levied on steel and aluminum in March and on autos that started on April 3. The 25 per cent tariff on auto parts does not come into effect until May 3.

Sectoral carve-outs stay

Trump's initial order exempted copper, lumber, semiconductors, pharmaceuticals and critical minerals from broad global tariffs. But these sectors are expected to be the subject of future trade investigations that are expected to lead to separate tariffs, in much the same manner as autos.

Separately, Trump's order exempted oil, gas and other energy products from the tariffs. — Reuters