Tariff Pause to Apply to All Except China; Deals to Be Made With Every Country, Even China

No executive order on the changes had been released as of press time.

Trump wrote on social media that he was rolling back reciprocal tariffs on trading partners because they are coming to negotiate, and because "these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States."

The EU has retaliatory tariffs planned, responding to steel and aluminum Section 232 duties, but because they have not gone into effect yet, the EU, too, will have its rate reduced to 10%, the spokesperson said.

Treasury Secretary Scott Bessent, who was with Trump when he posted the news, told reporters at the White House that it took "great, great courage for [the president] to stay the course until this moment," and said the reciprocal tariff push has now been shown to be a successful negotiating strategy.

"Each one of these solutions is going to be bespoke. It is going to take some time, and President Trump wants to be personally involved, so that's why we're hitting the 90-day pause," he said.

"We don't want to hurt countries that don't need to be hurt," Trump said later in the day. "The only problem is you can only negotiate with so many at one time."

Trump predicted: "A deal could be made with every one of them. A deal's going to be made with China. A deal is going to be made with every one of them. And there'll be fair deals. I just want fair. They will be fair deals for everybody. But they weren't fair to the United States. They were sucking us dry."

In two days of lengthy hearings in the House and Senate, U.S. Trade Representative Jamieson Greer said repeatedly that there will be no exclusions to these tariffs. But Trump told a reporter at the White House on April 9 that the administration "would take a look at" offering tariff exclusions to some U.S. companies. "There are some that have been hard. There are some that, by the nature of the company, get hit a little bit harder. And we'll take a look at that."

When asked how he would decide who deserved an exemption from tariffs, he said, "Instinctively, more than anything else. I mean, you almost can't take a pencil to paper."

He didn't directly acknowledge that meltdowns in markets affected his decision, but said he had been watching what was happening in the U.S. bond market -- "I saw last night that people were getting a little queasy," he said.

Republican members of the House who had expressed some queasiness themselves in a hearing with Greer over the feasibility of the reciprocal tariff approach, and its impact on retailers, celebrated the change in policy.

Ways and Means Committee member Rep. Blake Moore, R-Utah, said in a hallway interview at the Capitol that the change shows the administration recognized that "this high level of tariffs across the world is a major disruption," and it also shows that Trump wants to get good deals, so putting a date on the pause keeps the momentum going.

He said the triple-digit tariffs on Chinese imports "does affect us, but if we have other options, that's much better." He said if the U.S. is "going to go heavy" on China, helping businesses to move sourcing to other countries is the right thing to do. "That's why [the Generalized System of Preferences benefits program] GSP is so important. And I've been harping on this to our [leadership] team, our committee, that this is the moment to re-establish that commitment to industry."

Moore had just left a hearing with USTR Greer, who complained that when our trade deficit went down with China, it went up with Vietnam and Cambodia. Vietnam is not in GSP, but Cambodia and Indonesia are. "I've communicated that we shouldn't be overly focused on that [trading] balance, because from the spending power that we have, and the strength that we have," the U.S. will be able to buy more from some countries than those countries can buy from the U.S. He said the reciprocal tariffs were put on to put pressure on countries to negotiate, and that Trump showing flexibility is good news.

Ways and Means member Rep. David Schweikert, R-Ariz., said in a hallway interview at the Capitol that the high tariffs, combined with uncertainty about how the Republican majorities in Congress will tackle the federal budget deficit, were stressing the debt markets. "The last 24 hours, I've seen more movement in bond yields, up and down, up and down, I don't like to see that in U.S. sovereigns. Stability is really important. So can we take a big breath, and maybe get back to stability?"

Later in the afternoon, the president told reporters that everyone wants to make a deal, "much more" than 75 countries. "I think we're going to make a lot of people very happy," he said. He said he'd be willing to meet with China's president, too. "I like him, I respect him," he said. "I think President Xi is a very smart guy, and we'll end up making a very good deal for both."

Daniel Russel, Asia Society Policy Institute vice president of international security and diplomacy, said in a statement that China is the only country left in the crosshairs "while others get a temporary reprieve." Russel said China won't offer concessions, because its leaders believe "giving ground only invites more pressure."

He wondered if the" 90-day stay of execution" would last. He said that allies believe Trump backed down because of the market meltdown, "rather than a pivot to respectful, balanced negotiations."

Trump himself said, "It may not last" in the Oval Office in the late afternoon, if the negotiations include asks by other countries he thinks are unfair.

National Foreign Trade Council President Jake Colvin issued a statement saying the pause is a step in the right direction, "but let's not celebrate the fact that it appears to leave in place a new baseline of 10% tariffs on most countries, plus significant levies on China, steel and aluminum and autos with the promise of more duties to come.

“While this temporary pause may lessen the immediate pain, it doesn't diminish the uncertainty that is paralyzing companies' trade, sourcing, and investment calculations as well as Americans' ability to budget for their families and their future."

The U.S. Fashion Industry Association said it was relieved by the pause, but "concerned about the escalating trade war with China."

Rep. Brad Schneider, D-Ill., put out a statement after the news, saying, "This abrupt reversal retreat proves beyond any reasonable doubt that the President does not have a strategy to help the American people or the economy. What was the purpose of this self-inflicted economic crash?"

He asked what would be different in 90 days?

"The President has only paused a portion of his tariffs, and retains the ability to decimate US and global markets by sending out another social media post at any moment," he said.

“We must stop this whiplash and end the chaos once and for all. Congress must reclaim its constitutional responsibilities and strip the President of his ability to inflict senseless devastation on the American people."

However, a majority in the House was expected to vote later in the evening to block a pending resolution vote to terminate the trade deficit emergency, decreeing that it cannot come up for a vote before Oct. 1.