US Stocks Surge as Trump Pauses Tariffs for 90 Days

President Donald Trump announced a 90-day pause on the additional tariffs imposed on a range of countries willing to negotiate with the United States. This move marks a potential de-escalation in the escalating trade tensions that have dominated economic discussions in recent months.

In a statement posted on Truth Social, Trump indicated that he authorized the temporary suspension of tariffs on dozens of countries while his administration engages in trade negotiations. The announcement led to a surge in U.S. stock markets, with the S&P 500 climbing 5.6% and the Nasdaq jumping over 8%.

However, not all countries are exempt from Trump’s tariff strategy. The president simultaneously declared an increase in tariffs on Chinese imports to 125%, citing “the lack of respect that China has shown to the World’s Markets.” Specific details regarding which countries will be exempt from the additional tariffs remain unclear.

The announcement comes amidst a contentious House hearing featuring Jamieson Greer, Trump’s top trade official. Representative Brad Schneider (D-Ill.) expressed frustration over the administration’s tariff policies, questioning the rationale behind imposing sweeping tariffs that have triggered significant market volatility. Schneider characterized the current situation as a shift from an extended bull market to a “self-induced bear market,” emphasizing the arbitrary nature of the tariffs, even calling out the decision to impose tariffs on uninhabited territories like the Heard and McDonald Islands.

As the stock market reacts positively to the news of the tariff pause, analysts remain cautious about the long-term implications of Trump’s trade policies, particularly regarding relations with China. The upcoming negotiations and Trump’s aggressive stance on Chinese tariffs will be closely monitored by investors and economic experts alike.

In summary, while the temporary pause on tariffs has brought a wave of optimism to U.S. markets, uncertainties surrounding the future of trade relations and the ongoing situation with China continue to loom large.