Trump's Tariff Turnabout Sends Stocks Soaring

President Trump announced a temporary reduction in tariffs on many countries while increasing them on Chinese imports, which sent U.S. stocks higher. This decision aims to allow negotiation time with other countries as a 10% blanket duty remains on U.S. imports, excluding auto, steel, and aluminum.

In a surprising turn of events, U.S. President Donald Trump announced on Wednesday a temporary reduction in tariffs for several countries. However, the tariffs on imports from China will increase, signaling a further escalation in trade tensions between the two major economies.

The President's decision comes shortly after new tariffs were imposed, which had negatively impacted markets and led to fears of a looming recession. Trump specified that while Chinese imports will face a raised tariff of 125%, duties on other countries would be suspended for 90 days, allowing for negotiations.

Despite ongoing duties on products like autos, steel, and aluminum, U.S. stock markets rallied on the news. The S&P500 index surged by over 6%, and the bond yields and dollar both experienced upward movement.

(With inputs from agencies.)