Trump Takes a Surprising Step Back: Tariff Tensions Take a Twist

President Trump's unexpected decision to halt hefty tariffs sent global stock markets surging, despite escalating tensions with China. The reversal followed an intense period of market volatility, causing confusion among global leaders and prompting speculation about future trade negotiations.

In a dramatic shift, U.S. President Donald Trump paused the hefty tariffs he had recently imposed on various countries. The surprising move provided a welcome jolt to global stock markets on Thursday, despite ongoing tensions with China, the world's second-largest economy.

The decision followed significant market volatility, erasing trillions from stock markets and causing a surge in U.S. government bond yields. The volatility appeared to catch the attention of President Trump, who remarked that markets were "getting yippy." The response was immediate, with U.S. stock indexes climbing, and Japan's Nikkei index surging as well.

The halt on tariffs resulted in increased hopes of state support in China, although its currency weakened. However, the White House maintained a 10% tariff on nearly all U.S. imports, and the trade dispute with China remained intense, with Trump increasing tariffs on Chinese goods. This action has left global leaders and business executives puzzled over future trade strategies.

(With inputs from agencies.)