Trump Pauses Tariffs for 90 Days, Markets Surge Before Falling Back

President Donald Trump announced a 90-day pause on tariffs for over 75 countries negotiating on trade and refraining from retaliation. This temporarily eased global trade tensions but kept pressure on key rivals like China.

The decision caused a short-lived rally on Wall Street on Wednesday, with stocks showing an upward trend. Major indices posted historic gains before stocks resumed their downward trend this morning.

Under the new policy, the U.S. will suspend most of its recent tariff increases, though a 10% base tariff remains on nearly all global imports. China is an exception, where tariffs on its goods will rise dramatically to 125%, with some items facing a total of 145% in levies.

This has escalated the ongoing trade conflict between the world’s two largest economies.

The European Union welcomed the pause, suspending its own retaliatory measures in a bid to restart dialogue with Washington. Meanwhile, Beijing doubled down on its stance and issued more aggressive rhetoric and maintained its retaliatory tariffs.

Analysts continue to warn the trade war is far from over, and with rising U.S. Treasury yields hinting at investor unease, volatility is likely to persist.