US President Donald Trump has paused the implementation of most of his new “reciprocal” tariffs, citing public anxiety and economic reactions as key reasons. Speaking to reporters, Trump said, “They were getting yippy, you know, they were getting a little bit afraid.”

The announcement, posted on his social media platform Truth Social, revealed that the tariffs would be reduced to 10 per cent for a 90-day period for imports from over 75 countries that have chosen not to retaliate and instead opened negotiations with the US. These countries include India, which is currently discussing a Bilateral Trade Agreement.

However, China remains a notable exception. The President confirmed an increase in tariffs on Chinese goods to 125 per cent, following China’s retaliatory move to impose an 84 per cent tariff on American products.

Markets, which had been reeling from days of turmoil due to the tariffs, surged after the announcement. The Nasdaq index hit a two-decade high following Trump’s announcement and reassurances to investors.

Trump said the decision was made early Wednesday morning, despite previous hardline positions taken by his advisors. “You have to be flexible,” he added, noting that pressure from market watchers and business leaders, including Bill Ackman and Elon Musk, played a role.

The President’s post stated: “Based on the fact that more than 75 countries have called US representatives to negotiate solutions on trade, tariffs, and currency manipulation — and that they have not retaliated — I have authorised a 90-day PAUSE and a substantially lowered reciprocal tariff of 10 per cent, effective immediately.”

Meanwhile, Trump’s trade strategy has led to internal tensions, with Tesla CEO Elon Musk publicly clashing with Trump advisor Peter Navarro over the economic impact of the tariffs.

Still, Trump remained upbeat. “Be cool! Everything is going to work out well,” he wrote on Truth Social before markets opened. Moments later, in an all-caps post aimed at investors, he advised: “This is a great time to buy.”