The S&P 500 jumped nearly 8% and Dow stocks shot up nearly 3,000 points Wednesday on another roller-coaster day for the stock market following President Donald Trump’s announcement that a 90-day pause would be put on the proposed tariffs for non-retaliating countries.
That does not include China, which is still scheduled to see a 125% tax rate increase on imported goods.
The rally helped stocks regain the significant ground lost last week and in the first two days of this week as global markets reacted negatively to the simmering trade war environment as Trump pursues his aggressive agenda to remake the U.S. economy. The outcry from top business and Wall Street leaders — even some of those who were vocal in their support of Trump’s return to the White House — undoubtedly played a part in Trump’s decision to tap the brakes on some tariffs.
The brinksmanship with China, however, shows no sign of abating.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump wrote in a post on Truth Social. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable. Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!”
The Trump tariffs set a 10% baseline levy on imports from all countries, with higher rates for certain regions and countries including China (34%), South Korea (25%), Japan (24%), Taiwan (32%) and the European Union (20%). The 10% tariffs took effect April 5 and the higher duties were set to begin Wednesday.
From Variety US