Trump's Tariff Turnaround: A Stock Market Surge

U.S. President Donald Trump announced a temporary reduction in tariffs on non-Chinese imports, causing U.S. stock markets to rally. Despite escalating tariffs on China, stocks surged over 6%, and recession probabilities were adjusted by economists. The move reflects Trump's volatile tariff strategy, creating uncertainty in global trade relationships.

In a dramatic reversal, President Donald Trump announced on Wednesday a temporary reduction in new tariffs on many countries, while simultaneously increasing tariffs on Chinese imports. This sudden policy shift led to a sharp rise in U.S. stock markets, with the S&P 500 gaining over 6%.

Despite the increase in tariffs on Chinese goods to 125%, Trump suspended tariffs on other nations for 90 days to facilitate negotiations. The White House emphasized that the 10% general tariff on U.S. imports remains unchanged, maintaining duties on automobiles, steel, and aluminum.

The announcement underscored the unpredictability of Trump's trade policy, as expressed by global leaders and market analysts. U.S. Treasury Secretary Scott Bessent indicated that these tariffs were a strategic negotiation tool. Meanwhile, concerns persist over the ongoing trade tensions and their impact on global economies.

(With inputs from agencies.)