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90-Day Tariff Pause for Most Countries
- U.S. President Donald Trump declared a 90-day pause on further tariff hikes for over 75 countries.
- Trump stated the pause was due to countries opting to negotiate instead of retaliate against the U.S.
- Existing tariffs remain at 10% flat rate globally, effective from Saturday.
- The pause represents a significant policy shift from the prior aggressive tariff strategy.
Sharp Escalation Against China
- Trump raised U.S. tariffs on Chinese imports to 125%, up from an already steep 104%.
- The announcement came just hours after the earlier hike took effect.
- Trump accused China of “lack of respect” for global markets and continuing to “rip off” the U.S.
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China's Retaliatory Measures
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- China responded by increasing tariffs on U.S. imports to 84%.
- The situation between the U.S. and China has now escalated into a full-scale economic confrontation.
Global Market Reaction
- Wall Street markets rallied sharply following news of the global tariff pause.
- Markets had been experiencing days of intense volatility due to rising trade tensions.
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