“I have authorized a 90 day pause” President Trump stated late yesterday as he delayed tariffs on all countries apart from China.
To confirm this Treasury Secretary Scott Bessent later confirmed the President’s statement at a press conference outside the White House. Bessent stipulated that tariffs will remain at 10% for all countries in the meantime and will not revert to 2.8% that was mentioned in our story last week.
This was a surprise to some as U.S. stock markets rallied on the news. The Dow Jones Industrial Average gained 7.87 percent yesterday whilst the S&P 500 went up 9.51 percent. However, on Monday Walter Bloomberg or @Deltaone had already tweeted a false report declaring that a 90-day pause was being considered by the White House.
Markets have been suffering the after affects of U.S. tariffs and the related uncertainty for weeks now. Yesterday’s reprieve was a welcome correction. But what brought about the change?
75 Countries Seek Better Trade Deals with U.S.
The main argument by Bessent for Trump’s policy change is how there has been a resounding response from countries around the world seeking to improve trade relations with the U.S. Bessent believes that this proves that the world needs the U.S., he also thinks that this positive outreach from global partners justifies a pause in tariffs.
Trump has commented on how countries who do not retaliate will be rewarded, unlike China which saw tariffs raised to 125% yesterday amid heightened tensions between the two countries.
The move also comes after a vociferous exchange of opinions between Elon Musk and Trump’s trade advisor Peter Navarro.
Markets across the world will react to what happened in the U.S. yesterday. For now European and British markets haven’t opened, but they are likely to surge when they do.
Author: Andy Samu
Data comes from leading trading platform TradingView.
Disclaimer:
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
See Also:
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Will Trump’s Liberation Day Cause a Stock Market Crash? | Disruption Banking
