U.S. President Donald Trump has announced a 90-day pause on some of his recently imposed tariffs and said that he “substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” However, he escalated pressure on China, increasing tariffs on Chinese imports to 125%.
Trump said his temporary tariff pause came after more than 75 countries had reached out to U.S. officials seeking trade negotiations, suggesting a willingness among many nations to de-escalate. However, he blasted China for showing “a lack of respect” toward global markets. The move comes after China raised its own tariffs on U.S. goods to 84%, up from the previously planned 34%.
Financial markets made a powerful rebound following the news, with the S&P 500 surging 7.8%, the Dow Jones climbing over 2,300 points (more than 6%), and the Nasdaq jumping 8%. The rally was driven by significant gains in tech stocks, with Apple climbing 10% and Nvidia soaring 13%.
