Trump Temporarily Drops Tariffs to 10.0% for Most Countries, Hits China Harder with 125%

• President Donald Trump on Wednesday dropped new tariff rates on imports from most U.S. trade partners to 10.0% for 90 days to allow trade negotiations with those countries. Trump said “more than 75 Countries” contacted U.S. officials to negotiate after he unveiled his new tariffs last week.
• The president also said in a social media post that he was raising the tariffs imposed on imports from China to 125.0% “effective immediately” due to the “lack of respect that China has shown to the World’s Markets.” China, which is the U.S.’s third-largest trading partner, earlier Wednesday said it would increase its tariff rate for imports from the U.S. to 84.0%.
• Stock market indices rocketed sharply higher Wednesday on Trump’s announcement, reversing four days of losses. The benchmark S&P 500 index leapt by 7%, which puts it on track for its largest single-day gain in five years.
• Treasury Secretary Scott Bessett claimed to reporters that Trump had always intended to put the brakes on the wide-ranging tariffs the president announced last week. “This was his strategy all along,” Bessent said at the White House, where officials, including him, had denied for days that the tariffs would be suspended.

(Source: CNBC)