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”.