President Donald Trump has announced a significant escalation in trade measures against China, increasing tariffs on Chinese imports to 125%. He cited China’s “lack of respect” for global markets as the primary reason for this action.
Simultaneously, President Trump declared a 90-day pause on new tariffs for over 75 other countries that have not retaliated against U.S. trade policies. During this period, a 10% reciprocal tariff will be applied as negotiations continue.
The Wall Street Journal reports:
U.S. stocks rocketed higher Wednesday after President Trump announced in a social-media post that he had authorized a 90-day pause on certain tariffs to most countries.
Volatility returned to the market, as stocks recovered after at least one false start in early trading. But at shortly after 1 p.m. in New York, the president’s post on Truth Social lifted the three major indexes into session highs.
“More than 75 Countries” Trump wrote, “have called to negotiate a solution..and have not, at my strong suggestion, retaliated in any way, shape, or form.”
Because of that, he wrote, “I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
Still, recent developments and ongoing uncertainty have led to increased volatility in global financial markets. European and Asian stock indices have declined, oil prices have fallen below $60 per barrel and U.S. Treasury yields have spiked amid a bond sell-off since Trump’s “Liberation Day” announcement, raising concerns about a potential recession.
This is a breaking news story. Please check back for updates.
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