President Trump Wednesday rolled back increased tariffs for 90 days on all trading partners except China, sending Wall Street roaring back after a week of devastating losses.
Trump reduced his new import taxes to 10% for all countries except China and said he hoped to negotiate deals with nearly 100 nations that he said have been clamoring for compromises.
He raised the new tax on imports from China to 125% in a new tit-for-tat escalation of the trade war between the world’s two biggest economic powers.
“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%,” Trump wrote on his social media site.
The Dow Jones Industrial Average soared by more 2,000 points, or about 6%, within minutes of the Trump post. The tech-heavy NASDAQ rocketed up by close to 10%.
Treasury Secretary Scott Bessent praised Trump for his stunning about-face, claiming the yo-yo on tariffs was just a negotiating tactic to get trading partners to come to the table with the U.S.
“This was the president’s plan all along,” Bessent said. “It took great courage for him to stay the course.”
Bessent said he’s had positive trade talks with allies like Japan and South Korea and expressed confidence they could reach deals to permanently reduce tariffs. He claimed meetings with Vietnam had already borne significant fruit.
White House Press Secretary Karoline Leavitt told reporters they should read Trump’s “The Art of the Deal” to understand the president’s mastery of negotiation tactics and global markets.
“We finally have a president who is doing what’s right for the American worker,” Leavitt said.
