US President Donald Trump spoke at the White House on Liberation Day, announcing US reciprocal tariffs plans, on April 2. — XINHUA/VNA Photo

WASHINGTON DC — US President Donald Trump abruptly backed down Wednesday (US time) in his global trade war with a 90 day pause for most countries -- but slapped even more levies against China in what has become a full-scale confrontation between the world's two largest economies.

Following days of global market turmoil, Wall Street stocks surged in reaction to Trump's announcement.

"I have authorized a 90 day PAUSE" on higher tariffs that took effect on Wednesday, Trump said on his Truth Social network, saying he took the decision after more than 75 countries had reached out to negotiate and did not retaliate against the United States.

Only a flat rate of 10 per cent tariffs 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.

But the US decided to raise the tariff charged to China by the United States of America to 125 per cent, "effective immediately," Trump said.

Trump had only hours earlier ramped up the duties on Chinese goods to a giant 104 per cent. China then retaliated by raising tariffs on US imports to 84 per cent.

Party General Secretary Tô Lâm's phone call on April 4 was Trump's first phone call with a foreign leader after the announcement of reciprocal tariffs, US Ambassador to Việt Nam Marc Knapper has confirmed during a meeting with Deputy Prime Minister & Foreign Minister Bùi Thanh Sơn in Hà Nội.

During the call, the Vietnamese top leader has urged to slash tariffs against US goods into Việt Nam to zero, requesting the US to do the same for Vietnamese goods into the US.