US stocks sank on Thursday as the reality of a US-China trade war weighed on investor sentiment, even as President Trump instituted a 90-day pause on steep Liberation Day tariffs tariffs and the European Union announced a pause on retaliatory duties.

President Donald Trump's decision to pause so-called "reciprocal tariffs" for most countries triggered a historic stock market rally on Wednesday, but the levies that remain in place are still expected to hike prices and put the U.S. at risk of a recession, experts told ABC News.

The tariffs on goods imported from China are more like 145% when adding in the Trump administration's previous tariffs tied to the emergency declaration on fentanyl. Trump announced Wednesday that he was bumping up reciprocal tariffs on imports from China to 125%,

China announced Friday it will hike tariffs on US goods to 125%, up from the previously planned 84%, in direct response to President Trump’s reciprocal tariff moves. After celebrating yesterday's historic stock market rally on the White House lawn ...

China's Commerce Minister Wang Wentao had discussions with his Saudi Arabian and South African counterparts to exchange views on responding to the United States' "reciprocal tariffs", the Chinese ministry said on Friday.

Republican Sen. Thom Tillis expressed frustration with the tariffs as he entered the Senate Finance Committee.

After UBS suggested GPUs might get an exemption from Trump's now-145% tariffs, the Consumer Technology Association says GPUs will indeed 'receive the reciprocal tariff treatment.'

Stocks plunged a day after a historic gain. The White House confirmed China's tariff rate is higher than initially thought, at 145%.