US President Donald Trump announced a 90-day pause on higher tariffs that hit dozens of trading partners after midnight, while raising duties on China to 125 per cent, reports Bloomberg.

The president's about-face came roughly 13 hours after high duties on 56 nations and the European Union took effect, fuelling market turmoil and stoking recession fears.

"I thought that people were jumping a little bit out of line," said Mr Trump at the White House. "They were getting a little bit yippy, a little bit afraid."