Trump temporarily drops tariffs to 10% for most countries, ups China rate to 125%

President Donald Trump on Wednesday dropped his reciprocal tariffs for countries reaching out to the U.S. to negotiate to 10% for 90 days.

The 90-day reprieve is applied to nearly 90 nations except for China.

In a social media post, the U.S. president said he was raising the tariffs imposed on imports from China to 125% “effective immediately” due to the “lack of respect that China has shown to the World’s Markets.”

According to NBC News, the White House said it would not release the list of countries that have contacted the U.S. for tariff negotiations.

Previously, on April 2, President Trump said he would levy massive 46% tariffs on imports from Vietnam as part of a new wave of global impositions, while it was 34% for China. The tariff on Vietnam would come into force on April 9.

The tax imposition for Vietnam was among the highest, only after Laos (48%) and Madagascar (47%). It was higher than many others like Sri Lanka and Myanmar (44%), Bangladesh (37%), Thailand (36%), mainland China (34%), Taiwan (32%), India (26%), South Korea (25%), Japan and Malaysia (24%), the EU (20%), and the Philippines (17%).

China, which is the U.S.’s third-largest trading partner, earlier Wednesday said it would raise its tariff rate for imports from the U.S. to 84%.

Prime Minister Pham Minh Chinh on Tuesday had stated that Vietnam would ask the U.S. to delay imposing its new tariffs on imports from Vietnam for at least 45 days, so that there is time for negotiations, preparations, and a smooth transition.

Deputy Prime Minister Ho Duc Phoc, accompanied by corporate executives, is making a working visit to the U.S., starting April 6, for tariff negotiations.

AmCham Vietnam in a release on Tuesday said it is encouraged by the "quick and reasoned responses" of the Vietnamese government in reaction to the new U.S. tariffs.

The chamber added that it is "pleased to learn of the constructive telephone exchange" between Party chief To Lam and President Trump on April 4.

The General Statistics Office of Vietnam reported on Sunday that Vietnam posted a trade surplus of $3.16 billion in Q1/2025. The U.S. was Vietnam’s biggest export market with an export revenue of $31.4 billion, up 16.5% year-on-year. Vietnam’s trade surplus with the U.S. in January-March was $27.3 billion, up 22.1% year-on-year.

The VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), declined for four consecutive sessions by a total of 221.12 points, following Trump’s April 2 announcement on massive 46% reciprocal tariffs on imports from Vietnam. (Monday saw no trading as it was a national holiday in Vietnam). The index dropped 38.49 points, or 3.4%, to 1.094,3 on Wednesday.

Global stock market indices rocketed sharply higher Wednesday on Trump’s latest announcement, reversing four days of losses.

Financial markets have been in turmoil since Trump's announcement, with U.S. stock markets seeing four straight days of declines as of Tuesday.

Trump’s full Truth Social announcement:

Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.

Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!