Donald Trump authorises 90-day pause in tariffs on all countries except China

US President Donald Trump has said he will increase the tariff rate on Chinese goods imported into the United States to 125%.

In a post on Truth Social, Trump said the steeper new tariff rate would be "effective immediately" and was being enforced because of "the lack of respect China has shown the World’s Markets."

Earlier on Wednesday, China said it was raising its retaliatory tariff rate on the US to 84%, effective on Thursday.

In the same social media post, Trump said he had authorised a 90-day tariff pause for more than 75 countries who had reached out to negotiate with Washington since the 'Liberation Day' levies package was announced.

Treasury Secretary Scott Bessent told reporters that Trump was pausing his "reciprocal" tariffs on most of the country's biggest trading partners, but added that the 10% levy on nearly all global imports would remain in place.

The White House later clarified that the 90-day pause would apply to all countries except China and that a “universal 10% tariff” would apply while trade negotiations take place.

Global markets surged following the news with the Dow Jones index jumping 2,000 points within minutes of the announcement.

Trump's latest raft of tariffs, announced on Tuesday night, kicked in shortly after midnight on Wednesday morning and included 104% on products from China, 20% on the European Union, 24% on Japan and 25% on South Korea.

US administration officials had tried to reassure voters, Republican lawmakers and CEOs that the rates are negotiable, but also said that process could take months.

Our journalists are working on this story and will update it as soon as more information becomes available.