President Trump announced a 90-day pause on reciprocal tariffs, affecting countries that haven't retaliated against the U.S. This decision followed numerous calls from over 75 countries seeking solutions to trade issues. The pause includes a substantially lowered reciprocal tariff of 10%.
Simultaneously, Trump raised tariffs on China to 125%, citing a lack of respect for global markets. This action aims to address what he perceives as China's unfair trade practices.
The announcements caused a significant positive shift in stock markets, with the S&P 500 jumping nearly 6%. This suggests a positive market response to the pause in reciprocal tariffs.