Wall Street's main indexes rose strongly on Wednesday after US President Donald Trump announced a 90-day halt in reciprocal and 10% tariffs, beginning immediately. However, the president has increased tariffs on China to 125% with an immediate effect.
“At 01:26 p.m. the Dow Jones Industrial Average rose 2,169.93 points, or 5.76%, to 39,801.82, the S&P 500 gained 321.89 points, or 6.46%, to 5,304.66, and the Nasdaq Composite gained 1,229.20 points, or 8.04%, to 16,497.11,” Reuters reported.
Here's what we know about Trump's latest move
Trump on Wednesday declared a 90-day moratorium on the full implementation of his new tariffs for at least some countries.
In a social media post, Trump stated that he “substantially lowered the reciprocal tariff during this period of 10%, effective immediately.”
Trump also stated that he was hiking taxes on Chinese goods to 125% “effective immediately” in response to the “lack of respect that China has shown to the World's Markets.”
Trump reveals reason behind 90-day halt on tariffs
Trump's Truth Social post attributed his move to halt the full implementation of tariffs to the fact that “more than 75 countries” have attempted to connect with US officials “to negotiate a solution” to trade concerns that the President raised while imposing the additional charges.
{{/usCountry}}Trump's Truth Social post attributed his move to halt the full implementation of tariffs to the fact that “more than 75 countries” have attempted to connect with US officials “to negotiate a solution” to trade concerns that the President raised while imposing the additional charges.
{{/usCountry}}“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, 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!”
In a tweet, Commerce Secretary Howard Lutnick stated that he and Treasury Secretary Scott Bessent met with Trump when he posted the announcement on Truth Social, describing it as “one of the most extraordinary Truth posts of his Presidency.”
“The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction,” Lutnick added.