In a surprise move made on Wednesday, President Donald Trump announced a 90-day suspension of tariffs for most countries, sparking a dramatic rally in the U.S. stock market. The temporary pause excludes China, for which tariffs have been sharply increased to 125%, citing ongoing trade imbalances and lack of cooperation.
The announcement comes just hours after Trump’s reciprocal tariffs went into effect, and amid growing concern over a global economic slowdown given the escalating trade tensions.
As of the time of this report, markets have responded swiftly and positively to the news. The Dow Jones Industrial Average soared 2,810 points, 7.4% – its largest single-day gain in recent years. The S&P 500 Index is up 8.5%, and the tech-heavy Nasdaq jumped 10.6%. There is still time left in trading hours.
This strategic pivot appears aimed at reducing pressure on American businesses and consumers while keeping diplomatic leverage over China, who just days earlier retaliated against the U.S. with a 84% tariff on American goods. Analysts believe this 90-day window could serve as an opportunity to reshape U.S. trade policy, ease inflationary pressures, and stabilize market sentiment.
Investors will be watching closely to see whether this marks the beginning of broader de-escalation or simply a temporary reprieve in a high-stakes trade standoff.
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