A. M. US President Donald Trump announced a 90-day pause in the imposition of high tariffs on dozens of countries, sparking a historic rally in the stock markets. The measure does not apply to China, which has been hit with a 125% tariff increase on its products.
On his social media platform, Truth Social, Trump explained that he will replace the tariffs announced last week with a universal 10% levy, with exemptions for Mexico and Canada. However, the previous tariffs on steel, aluminum, and automobiles, which do affect Mexican and US products, remain in place.
The market reaction was immediate. Wall Street experienced a day of unprecedented gains: the S&P 500 rose 9.5%, the Dow Jones 7.8%, and the Nasdaq a staggering 12.1%, following several days of declines caused by the previous announcements.
President Trump justified the pause in tariffs by arguing that representatives from 75 countries had contacted his government to negotiate solutions on trade, tariff barriers, and currency manipulation, among other issues. The measure seeks to create space for dialogue.
In contrast, the president adopted a harsh tone with China, criticizing its 84% tariff response on US products. “China will realize that the days of ripping off America are no longer sustainable”, he declared. However, he also expressed confidence in reaching an agreement with Beijing.
Treasury Secretary Scott Bessenet noted that the tougher stance against China is a response to the escalating retaliation. Analysts believe the new tariff scheme is more predictable and closer to Trump’s campaign promises, reassuring investors.
