Facing global criticism, U.S. President Donald Trump announced a 90-day pause on reciprocal tariffs, excluding China. This decision significantly boosted the U.S. stock market. Trump clarified that while other countries might benefit from reduced tariffs, China would see a 125 percent tariff on its exports due to Beijing’s recent imposition of tariffs up to 84 percent on American goods.
The White House declared that tariffs on imports would drop to 10 percent, exempting Canada and Mexico. When questioned about the sudden policy shift, Trump cited the need to correct course and noted enthusiasm from over 75 countries for potential deals. This strategic tariff adjustment led to a remarkable 9.5 percent rise in the S&P 500, marking its most substantial gain since October 2008.
Notably, influential figures like Elon Musk and investor Bill Ackman had urged reconsideration of the tariffs, highlighting internal opposition within the U.S. regarding Trump’s trade policies.
