from CNN
President Donald Trump announced a complete three-month
pause on all the “reciprocal” tariffs that went into effect at midnight,
with the exception of China, a stunning reversal from a president who
had insisted historically high tariffs were here to stay.
But enormous tariffs will remain on China, the world’s
second-largest economy. In fact, Trump said they will be increased to
125% from 104% after China announced additional retaliatory tariffs
against the United States earlier Wednesday. All other countries that
were subjected to reciprocal tariff rates Wednesday will see rates go
back down to the universal 10% rate, he said.
“Based on the lack of respect that China has shown to the
World’s Markets, I am hereby raising the Tariff charged to China by the
United States of America to 125%, effective immediately,” Trump said in
his social media post. “At some point, hopefully in the near future,
China will realize that the days of ripping off the U.S.A., and other
Countries, is no longer sustainable or acceptable,” he wrote.
Speaking to reporters after the announcement, Trump said,
“Nothing’s over yet, but we have a tremendous amount of spirit from
other countries, including China. China wants to make a deal, they just
don’t know how quite to go about it.”
Mexico and Canada won’t face the 10% tariffs, a White House
official told CNN. Almost every good coming from the two nations will
continue to be tariffed at 25%, unless they are compliant with the
US-Mexico-Canada Agreement, in which case they won’t face tariffs.
However, that does not apply to sector-specific tariffs Trump has
imposed.
Wall Street breathed a sigh of relief, however, that Trump
was backing down on other extreme trade measures. Stocks rallied sharply
on the news – even though the 10% universal tariff on all imports
coming into the United States remained in effect.
The Dow surged nearly 3,000 points or 7.87%, on Wednesday.
The S&P 500 shot up 9.5%. The tech-heavy Nasdaq soared 12.2%. This
marked the best day for the S&P 500 since October 2008. The Nasdaq
posted its best day since January 2001 and its second-best day on
record. While the Dow posted its best day in five years...
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