Trump cuts most reciprocal tariffs to 10% for 90 days, hikes China’s to 125%
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The news: US President Donald Trump said he authorised a 90-day pause on reciprocal tariffs for most trade partners, lowering the reciprocal tariff rate during this period to 10%, and raising duties on China to 125%, effective immediately.
What they said: Trump made the announcement on Wednesday in a post on Truth Social, saying “more than 75 Countries” had contacted US officials “to negotiate a solution” on issues including tariffs, trade barriers and currency manipulation, and “have not, at my strong suggestion, retaliated in any way, shape, or form.”
The pause came roughly 13 hours after higher reciprocal duties on dozens of nations and the European Union went into effect.
Trump’s announcement also said China would not be included in the pause. He said that “based on the lack of respect that China has shown to the World’s Markets,” tariffs on Chinese imports would rise to 125%, effective immediately.
US stocks surged after the announcement, with the Dow and Nasdaq rising sharply.
The numbers: US stock markets soared following Trump’s announcement, with the Nasdaq jumping almost 10%, the S&P 500 climbing over 7% to regain as much as USD3.2 trillion in market value lost in recent days, and the Dow Jones Industrial Average shut up almost 7%.
Retail and technology stocks led the rally, with Apple up 13%, Nvidia up 12%, and the S&P 500 Consumer Discretionary Index posting its largest gain since 2008.
Commodity markets followed suit, as copper futures jumped up to 7%, natural gas gained 7.7%, and soybeans and corn hit session highs.
Credit markets also responded, with US junk bonds rallying by the most since April 2020.
The source: Donald Trump post
