President Trump announced a 90-day pause on reciprocal tariffs for most countries, lowering them to 10%, following considerable pressure from affected nations. This decision led to a significant surge in US sharemarkets. The only exception is China, which now faces a 125% tariff.
The administration justified the differing treatment of China, stating that its actions lacked respect for world markets. The 125% tariff on Chinese goods is intended to address concerns about unfair trade practices.
The decision was met with swift and positive market reactions, with the Nasdaq, Dow Jones, and S&P500 showing substantial gains. Trump's administration emphasized its successful negotiation strategy, boasting that numerous countries contacted the US to discuss trade deals.
Trump claimed the temporary reduction in tariffs was a demonstration of leverage successfully gained through his initial imposition of higher tariffs. He highlighted the numerous countries that reached out to the US for negotiation as proof of this success.