In a dramatic shift, the US president paused tariffs on most nations while hiking China’s rate to 125%, triggering a global market rally but leaving key policy details unclear.

Facing a global market meltdown, President Donald Trump on Wednesday, April 9, abruptly backed down on his tariffs on most nations for 90 days but raised his tax rate on Chinese imports to 125%. It was seemingly an attempt to narrow what had been an unprecedented trade war between the United States and most of the world to one between the US and China.

“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,” Trump wrote on Truth Social. Saying that more than 75 countries had asked for negotiations over the tariffs, Trump said he “authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”

Global markets surged on the development, but the precise details of Trump’s plans to ease tariffs on non-China trade partners were not immediately clear. Shortly after Trump announced his latest pivot on his Truth Social platform, the S&P 500 surged 6.0% higher to 5,281.44, snapping a brutal run of losses since Trump’s “Liberation Day” tariff announcement a week ago.