BEIJING / NEW YORK: Wednesday saw markets around the world taking a rollercoaster ride after a series of moves and counter-moves in the rapidly escalating global tariff war saw the Trump administration announce a 90-day pause on duties against allothernations except for China, which now faces a staggering tariff.

`Based on the lack of respect that China has shown to the World`s Markets, I am hereby raising the Tariff chargedto China by the United States of America to 125 per cent, effective immediately, Trump said on Wednesday.

The move came after both Beijing and the European Union hit back by raising duties on American products on Wednesday. Beijing announced it would also raise its levies on US goods by 50 per cent, adding to the 34pc increase previously announced and due to be implemented on Thursday.

This would raise additional duties on American imports to China to 84pc.The EU also adopted its first measures, hitting back at President Trump`s tariff onslaught, targeting more than 20 billion euros worth of US goods including soybeans, motorcycles and beauty products.

`I have authorized a 90-day PAUSE` on higher tariffs that took effect on Wednesday, Trump said, adding that he took the decision after more than 75 countries had reached out to negotiate and did not retaliate against the US.

Only a flat rate of 10pc on all countries that took effect on Saturday will remain in place. This marked a stunning reverse from often punishing levies that hit even many of the closest US allies.

Following initial confusion about whether the pause also applied to the EU or not, a White House official told BBC News that the bloc would only face the 10pc baseline tariff.

The EU notably did not retaliate against the separate 20pc US tariffs on all goods that came into effect a minute after midnight on Wednesday.

The official also clarified that tariffs above 10pc were paused for everyone expect China, Mexico and Canada. The baseline rate was never applied to the latter two, thanks to the their free trade agreement with the US.

Amid stock market panic, Trump earlier Wednesday urged Americans to `BE COOL! and said that `Everything is going to work out well`.

Stocks, oil prices and the dollar all rallied in the latter half after weak showings earlier in the day.

Minutes after the pause was announced, the S&P 500 surged 6pc to 5,281.44, snapping a brutal run of losses over the past week, while the Nasdaq was up about 10pc.

The US dollar had initially weakened against safe-haven currencies including the yen and the Swiss franc while the euro strengthened as markets grappled with titfor-tat measures by majorcountries.

Against the Japanese yen, the dollar eventually strengthened 1.25pc to 148.08.

US Treasuries were also hit with new selling pressure before Trump`s announcement of a pause served as a balm, with yields paring gains after an auction of 10-year notes saw strong demand.

Oil prices climbed too, bouncing back from fouryear lows earlier in the session. Brent futures were up $1.82, or 2.9pc, to $64.64 a barrel at 1802 GMT. US West Texas Intermediate crude futures gained $1.92, or 3.22pc, at $61.50.

Both contracts lost about 7pc earlier in the session before the reversal.

Beijing`s tariffs China had imposed restrictions on 18 US companies, mostly in defence-related industries, adding to the 60 or so American firms earlier punished over Trump`s tariffs.

Earlier on Wednesday, Beijing also released a white paper on US-China commercial ties in which it called the trade gap between the world`s top two economies `inevitable`.

`The trade imbalance in goods between China and the U.S. is both an inevitable result of structural issues in the U.S. economy and a consequence of the comparative advantages and international division of labour between the two countries,` said the report, which was released by the State Council Information Office shortly after the higher US tariffs took effect.

`If the US insists on escalating trade restrictions, China has both thedetermination and the means to respond forcefully and will do so,` a commerce ministry spokesperson said in a statement accompanying the white paper`s launch.

Reuters reported China`s top leaders planned to convene a meeting as early as Wednesday to discuss measures to boost the economy and stabilise the capital markets.

EU tariff The EU`s levies of up to 25pc are retaliation for US duties on steel and aluminium imposed last month with Europe`s response to Trump`s latest tariffs salvo yettobe announced.

`These countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome,` the European Commission said in a state-ment issued after EU member states greenlit the measures.

Duties will start to be collected under the measures on April 15, the commission said.

Trump has also slapped a 25-percent tariff on car imports from the EU.

The measures approved Wednesday consist of two parts: first, the EU will let a set of levies dating from Trump`s first term but currently suspended snap back into place and they will be collected from next Tuesday.

The second step includes the new list of products to target with tariffs, most of which will take effect next month, with some in December.

Meanwhile, China has filed a complaint with the World Trade Organisation (WTO) over bruising tariffs imposed byWashington, Beijing`s commerce ministry announced Wednesday, accusing US President Donald Trump of engaging in `bullying` tactics.

Beijing has called for the world to unite against Trump`s aggressive trade policy and warned that it intends to `fight it to the end`.

Calling the snowballing rounds of tariffs unleashed on China `a grave mistake`, a spokesperson for the commerce ministry said the cumulative measures highlight `the unilateral bullying nature of the US actions`.-Agencies