Oil prices up 3% after Trump declares pause on most tariffs but higher tariff on China

 Oil prices climbed on Wednesday, bouncing back from four-year lows earlier in the session, after U.S. President Donald Trump announced he would further increase tariffs on China but pause the tariff increases he announced last week for most other countries.

Trump authorized a 90-day pause as part of his tariff plan but also raised the tariff rate for China to 125%, effective immediately. The previously announced 104% tariff on China kicked in at 12:01 a.m. EDT (0401 GMT) on Wednesday.

Brent futures were up $1.82, or 2.9%, to $64.64 a barrel at 2:02 p.m. EDT (1802 GMT). U.S. West Texas Intermediate crude futures gained $1.92, or 3.22%, at $61.50.

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

"We've reached a turning point in the trade conflict with Trump giving the countries that have shown desire to work on a deal to get rid of tariffs some time to work it out," said Phil Flynn, senior analyst with Price Futures Group.

"What Trump is doing is putting China out on an economic island all by themselves," Flynn said.

China announced additional tariffs on U.S. goods, imposing 84% tariffs on U.S. goods from Thursday, in retaliation against President Donald Trump's tariff policy.