U.S. President Donald Trump has announced an immediate increase in tariffs on Chinese goods, raising them to 125%. Alongside this sharp hike, he has authorized a 90-day pause on certain tariffs. This temporary suspension will apply specifically to reciprocal tariffs and the existing 10% tariffs.
U.S. Treasury yields stay high after Trump announces a 90-day pause on tariffs. The 10-year yield was last seen at 4.363%.
U.S. Treasury Secretary Bessent said he wouldn’t call it a trade war, but acknowledged that China has escalated the situation. He also added that countries which didn’t retaliate will be rewarded.
Bessent says: “We expect countries to approach us with their best offers.The pause is intended to allow time for negotiations—it’s not a response to market reactions.”
U.S. Treasury Secretary Bessent said he wants to negotiate with China in good faith and is waiting to see how China responds. When asked about bonds, he mentioned that Wednesday’s 10-year Treasury auction went quite well. He also added that this was always President Trump’s intention.
Nasdaq Composite is up more than 10% today. This could become its 4th best day ever and the biggest one-day jump since October 2008. It’s also set to break its previous record for the highest one-day point gain by more than double.
The 90-day tariff pause does not apply to Canada and Mexico, nor does it cover tariffs on autos, steel, and aluminum. The 25% tariff on non-USMCA trade with these countries will remain in effect. (Source: Reuters)
Dow surges over 7.87%, gaining 2,962 points, while the S&P 500 jumps 9.5%, marking one of its strongest performances since World War II. Nasdaq leads the rally with a 12.16% spike, after President Trump announces a pause on tariffs for most countries.
US stock market gained $5.5 trillion in value today.
Update
White House has clarified that the new 125% tariff on China is in addition to the existing 20% tariff imposed earlier by Trump over China’s involvement in supplying fentanyl and its precursors to the U.S.
This brings the total tariffs added by Trump on China to 145% since taking office.
According to the Wall Street Journal, Trump was aware that the economy might slip into a recession but aimed to prevent a full-blown depression with his tariff policies.
Dow has now fallen over 1,700 points, the Nasdaq is down more than 980 points, and the S&P 500 has dropped over 270 points.
Bessent, asked about market conditions:”I don’t see anything unusual today.”
[…] President Trump has also authorized a 90-day pause on some tariffs, particularly on reciprocal duties and the previous 10% levies. According to Bessent, this “pause” is meant for negotiations, not as a reaction to market pressure. […]
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