In a surprising turn of events, financial markets across the globe experienced a significant boost after US President Donald Trump announced a temporary halt on tariffs against countries that have not retaliated against the United States. This move by the Trump administration, referred to as a “90-day pause,” has brought a sense of relief to investors and traders alike.
White House Press Secretary Karoline Leavitt confirmed that during this pause, a “universal 10%” tariff will remain in place for all countries except for China. Additionally, the White House has also initiated a 125% tariff on China, which will take effect immediately. This decision is seen as a strategic move to address ongoing trade tensions between the US and China.
Following the announcement, the NASDAQ index saw a remarkable 9% increase, while the S&P 500 index rose by 8%. This surge in the market demonstrates the positive response from investors to the news of reduced tariffs and a potential resolution to trade disputes.
Overall, the announcement of the temporary pause on tariffs has instilled a sense of optimism in the financial markets. It remains to be seen how the situation will evolve in the coming days and weeks, but for now, investors are buoyed by the prospect of a more stable trade environment.
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