'A welcome reprieve': Trump announces 90-day tariff pause for most nations

US President Donald Trump has abruptly backed down on his tariffs on most nations for 90 days but raised his tax rate on Chinese imports to 125%.

US treasury secretary Scott Bessent told reporters that Mr Trump was pausing his so-called “reciprocal” tariffs on most of the country’s biggest trading partners, but maintaining his 10% tariff on nearly all global imports.

Imports tariffs on goods from China, though, would surge to 125% “effective immediately” Mr Trump said on social media.

Amid a global market meltdown, the move was seemingly an attempt to narrow what had been an unprecedented trade war between the US and most of the world to one between the US and China.

Global markets surged following the development, but the precise details of Mr Trump’s plans to ease tariffs on non-China trade partners are not immediately clear.

Mr Bessent added that the markets “didn’t understand” Mr Trump’s tariff strategy.

“The market didn’t understand, those were maximum levels. The countries can think about those levels as they come to us to bring down their tariffs, their non-trade barriers,” he told reporters at the White House.

He said Mr Trump “created maximum negotiating leverage for himself” and the Chinese have “shown themselves to the world as the bad actors”.

It comes as some businesses have already seen orders from the US “slowing or drying up entirely”, Taoiseach Micheál Martin said.

He was speaking during a dedicated time in the Dáil to hear statements on US tariffs, during which TDs said it would be ordinary people that would pay the price for new tariffs.

“We are already hearing from some who are seeing orders from the United States slowing or even drying up entirely, putting valuable and skilled jobs at risk, and there may be more to come," he said.

Mr Martin said the EU response to the tariffs to date was “the correct one”, and he was satisfied that the concerns of Ireland had been “taken fully into account”.

Speaking to The Echo following Trump's latest announcement Independent Ireland leader Michael Collins said "it is an opportunity for dialogue now with the American administration". 

"We will see what the next couple of weeks entails. I welcome the pause, but it will certainly take a hell of a lot of negotiations to bring this to some kind of successful solution."

Fianna Fáíl TD Padraig O'Sullivan said the news is "a welcome reprieve at the moment, given the anxiety that is there at the moment in particular in our pharma and bio tech industry here in Cork".

"I think it is also a sign that the EU as a block has demonstrated, that collectively and with cool heads, in any future negotiations common sense will prevail," he added.

Fine Gael TD Colm Burke said: “I was on the joint committee of the European Parliament and US congress back in 2009. It was amazing the cooperation that was there between the US and Brussels at the time.

“The big problem that we have now is the uncertainty that is in the markets. Anything could happen now because it is changing from day to day.”

Liam Quaide, Social Democrats TD, added: "The pause on European tariffs is welcome but is a further reflection of the chaos that Trump is unleashing on the world economy. It's clear he is operating off gut instinct ... as opposed to some kind of economic masterplan. The result is huge uncertainty in the markets.

"It's crucial we maintain our stance of calm, collected unity with our European partners. The Social Democrats welcome a cross-party approach to this crisis, and will work constructively with government and other parties in opposition."