President Donald Trump hiked tariffs on China from 104% to 125%|@WhiteHouse|X
The markets received a much-needed respite yesterday when President Donald Trump announced a 90-day pause on most reciprocal tariffs on countries. The 10% base duty remains.
The 90-day pause sparked markets to historic rallies. The S&P 500 rose 9.52%, marking its largest single-day gain since 2008. The Dow Jones advanced 7.87%, and the tech-heavy Nasdaq jumped 12.16%, its biggest one-day jump since 2001.
Nearly 30 billion shares were traded, making it the heaviest volume day on Wall Street in history, per records dating back 18 years.
Trump said the temporary halt came after more than 75 countries reached out to negotiate.
However, China is not among the countries that saw a pause on levies. Trump increased tariffs on the country from 104% to 125%. The move came after the Southeast Asian nation announced duties on US imports of 84%.
China exports over $400 billion worth of goods to America, and the escalating trade war is sending jitters across businesses and banks.
The new tariffs on China will affect several consumer products, including iPhones, TVs, toys and sneakers. Companies like Amazon have reportedly canceled their orders for Chinese goods.
Several Chinese merchants say they haven’t received any US orders since January.
Meanwhile, American companies adjust to Trump tariffs.
- Walmart blamed Trump’s tariffs for walking back its Q1 profit target.
- Delta Air Lines recently pulled its full-year forecast, citing “broad economic uncertainty around global trade.”
Economists were relieved about the tariff pause but remained cautious. Goldman Sachs lowered its recession odds from 65% to 45%.