Donald Trump has paused all tariffs for 90 days, with the exception of China that has been hit with a 125 per cent tariff.

US stocks jumped after after the President confirmed he authorised a 90 day pause on tariffs.

The President took to social media to say China "ripping off" the US is "no longer sustainable or acceptable."

In the minutes after Trump's announcement, the Dow Jones Industrial Average rose 5.76 per cent, to 39,801.82, the S&P 500 rose 6.46 per cent and the Nasdaq Composite gained 8.04 per cent.

Donald Trump speaks during a meeting with Israeli Prime Minister Benjamin Netanyahu

The President wrote on his Truth Social page: "Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125 per cent, effective immediately.

"At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.

"Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States...to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs.

"These Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 per cent, also effective immediately. Thank you for your attention to this matter!"

US President Donald Trump attends a bilateral meeting with China's President Xi in 2019Reuters

It comes on a day of escalating economic tensions between Washington and Beijing.

China announced a tariff hike on US imports to 84 per cent from 34 per cent, shortly after Trump’s initial 104 per cent tariffs on Chinese imports kicked in this morning.