Washington: US President Donald Trump abruptly backed down in his global trade war, imposing a 90-day pause for most countries.
On the other hand, Trump slapped even more levies against China in what has become a full-scale confrontation between the world’s two largest economies.
Following days of global market turmoil, Wall Street stocks surged in reaction to Trump´s announcement.
Trump said on his Truth Social network, “I have authorised a 90-day PAUSE” on higher tariffs that took effect on Wednesday. He said he decided after more than 75 countries reached out to negotiate and did not retaliate against the United States.
Only a flat rate of 10% tariffs on all countries that took effect on Saturday will remain in place. This marked a stunning reverse from often punishing levies that hit even many of the closest US allies.
But Trump accused China of still “ripping off” his country.
“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.
Trump had only hours earlier ramped up the duties on Chinese goods to a giant 104%. China then retaliated by rising tariffs on US imports to 84%.
“At some point, hopefully in the near future, China will realise that the days of ripping off the USA., and other Countries, is no longer sustainable or acceptable,” Trump said.
Wall Street stocks rocketed higher Wednesday after Trump´s pause announcement.
Minutes after Trump unveiled it, the S&P 500 surged 6.0% higher to 5,281.44, snapping a brutal run of losses over the past week.
European and Asian stock markets had earlier tumbled along with oil and the dollar as the confrontation escalated.
