US President Donald Trump said on Wednesday he would pause many of his new tariffs for 90 days, even as he raised them further on imports from China.

Trump’s sudden reversal came less than 24 hours after steep new tariffs kicked in on imports from dozens of trading partners. The new trade barriers have hammered markets, raised the odds of recession and prompted retaliatory responses from China and the European Union.

Trump said he would raise the tariff on Chinese imports to 125 per cent from the 104pc level that took effect at midnight. At the same time, he said he would lower them on other countries also subject to his new targeted duties.

“I have authorised a 90-day pause, and a substantially lowered reciprocal tariff during this period, of 10pc, also effective immediately,” Trump wrote on social media. It is unclear how the move affects the European Union (EU) which earlier announced its own tariffs on US imports and goods

US stock indexes jumped on the news.

Bond yields came off earlier highs.

Earlier in the day, China and the EU announced new trade barriers on US goods in response to steep duties imposed by Trump, escalating a global trade war that has hammered markets and raised the likelihood of recession.

The EU said it would impose 25 per cent tariffs on a range of US imports in a first round of countermeasures. The 27-member bloc faces US tariffs of 20pc on most products and higher duties on autos and steel.

Countermeasures in Canada, a close US ally and major trading partner, also took effect today.

Targeted US duties on dozens of other countries, from Japan to Madagascar, also took effect, the latest in a thicket of tariffs that are unwinding a global trading order that has been in place for decades. Tariffs in the world’s largest consumer market now average above 20pc, according to various estimates, up from 2.5pc before Trump took office.

Trump’s punishing tariffs — which he says aim to end US trade deficits with many countries — have upended a global trading order in place for decades, raising fears of recession and wiping trillions of dollars off the market value of major firms.

Global markets took a pummelling today as Trump’s eye-watering 104pc tariffs on China came into effect, and a savage selloff in US bonds sparked fears that foreign funds were fleeing US assets.

Beijing has consistently opposed tariff rises and said earlier today it would take “firm and forceful” steps to protect its interests.

Its finance ministry later said in a statement that “additional tariff rates” on imports originating in the US would “rise from 34pc to 84pc”, effective from 12:01pm on Thursday.

“The tariff escalation against China by the US simply piles mistakes on top of mistakes [and] severely infringes on China’s legitimate rights and interests,” the ministry said.

Washington’s moves “severely damage the multilateral rules-based trade system”, it added.

Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said China “sent a clear signal today that the government will keep its stance on trade policies”.

“I don’t expect a quick and easy way out from the current trade conflict,” Zhang said, adding that “the damage to........

© Dawn Business