Facing a global market meltdown, President Donald Trump on Wednesday abruptly backed down on his tariffs on most nations for 90 days but raised his tax rate on Chinese imports to 125%.
AP Video of President Trump meetinf with racind champions and then taking questions from reporters on tariffs
The S&P 500 was up 7.8% in afternoon trading. It had been down earlier in the morning amid worries about Trump’s trade war and whether it would cause a recession, as economists fear. But it spiked immediately after Trump sent the social media posting that investors have been waiting for. The Dow Jones Industrial Average was up 2,476 points, or 6.6%, as of 1:35 p.m. Eastern time, and the Nasdaq composite was 9% higher.
What to know:
- Trump announces pause on Truth Social: Trump said that because so many countries had “not retaliated” against his latest crank higher in tariffs, he said, “I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!”
- Treasury Sec. Bessent says Trump will keep 10% import tariffs: Treasury Secretary Scott Bessent told reporters that Trump was pausing his so-called ‘reciprocal’ tariffs on most of the country’s biggest trading partners but maintaining his 10% tariff on nearly all global imports.
- Global markets react: In stock markets abroad, indexes tumbled across most of Europe and much of Asia after they closed before Trump’s announcement. London’s FTSE 100 dropped 2.9%, Tokyo’s Nikkei 225 sank 3.9% and the CAC 40 fell 3.3% in Paris. Chinese stocks were an outlier, and indexes rose 0.7% in Hong Kong and 1.3% in Shanghai.
Trump acknowledges markets were ‘pretty glum’ but said bond market now looks ‘beautiful’
Trump said he was watching the markets the last few days and said that “it looked pretty glum,” and that he saw Tuesday that on the bond market, “people were getting a little queasy.”
“The bond market right now is beautiful,” the president told reporters at the White House.
Trump defended his decision to launch the tariffs, sending shocks into the market, because the situation with the U.S.’s trading partners “wasn’t sustainable.”
“Somebody had to pull the trigger. I was willing to pull the trigger,” he said.
The president said he would consider exempting some companies who’ve been hit particularly hard by the tariffs, but when asked how he would make those determinations, he said, “Just instinctively.”
“You almost can’t take a pencil to paper. It’s really more of an instinct,” he said.
Trump explains why he pulled back on many tariffs on U.S. trading partners
Trump was asked about volatile markets and his decision to back off on many tariffs after previously suggesting he wouldn’t do so.
Trump says he pulled back on many tariffs on U.S. trading partners — but not on China — because people were getting ‘yippy’ and ‘afraid.’
His comments came as he was chatting with reporters during an event with racing champions on the White House driveway.
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
