WASHINGTON — President Donald Trump backed down from his trade war against the rest of the world Wednesday, at least temporarily, after his April 2 “Liberation Day” announcement tanked financial markets across the globe.

Trump announced on his social media platform that he is reducing tariffs on all countries to 10% for 90 days, rather than the higher rates he had misleadingly described as “reciprocal” tariffs last week. However, he said, China’s exports to the U.S. would now see a 125% tariff.

“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%, 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,” Trump posted Wednesday afternoon.

“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that 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%, also effective immediately. Thank you for your attention to this matter!”

While Trump had sold the higher rates on dozens of other countries as merely charging the same import tax on a country’s imports as that country was charging American goods, in fact Trump’s rates appeared to be based on that nation’s balance of trade with the U.S.

Countries that exported more to the United States than they imported from American manufacturers were hit with higher tariffs than the 10% baseline for all imports.

That formula hit poor countries, whose citizens simply cannot afford to buy American goods, the hardest. Vietnam had faced a “reciprocal” tariff of 46%, for example. Lesotho — which Trump at one point said he never heard of — was hit with 50%.

All of those tariffs were to have taken effect at 12:01 a.m. Wednesday, and now will be postponed three months, according to Trump.

The high tariff rate on Chinese goods, nevertheless, could create sticker shock for Americans used to buying cheap household goods made there. A T-shirt that might have sold for $9.99 at Walmart, for example, will now likely be priced at more than $20.

This is a developing story. Please check back for updates.