U.S. stocks jumped on Wednesday afternoon after President Donald Trump announced a 90 day pause on the recently announced tariffs.
On Truth Social platform, Trump wrote:
“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,” the U.S. President stated.
“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable. Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!” Trump added.
The S&P 500 surged 6% while the Dow Jones Industrial Average gained 5.8% and the Nasdaq Composite rose 8%.
As of the time of writing, shares of Tesla are jumping 13.60% at $251 while EV makers Lucid and Rivian are up 8% each. Detroit carmakers Stellantis, Ford and GM are trading between 5% and 8% higher.
Separately, Trump announced on Wednesday it is again raising China tariffs from 104% to 125% effective immediately, a few hours after China’s finance minister said that Beijing would match Trump’s previous 50% tariff hike by increasing duties on US imports from 34% to 84%, effective Thursday, April 10.
Speaking with Fox Business, U.S. Secretary of the Treasury Scott Bessent was asked on Wednesday morning if the U.S. is considering the removal of U.S.-listed Chinese stocks as a possible next step.
Scott Bessent said, “Well, I think everything is on the table,” before detailing upcoming measures on export controls and limits in the Chinese assets that U.S. retail and institutional investors “should not be investing.”
Bessent is seen as a close associate of Trump’s economic policy team.
