WASHINGTON: US President Donald Trump announced a 90-day pause on his sweeping tariffs Wednesday, giving all countries a 10 percent baseline except China, which will see even higher levies. “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,” Trump wrote on Truth Social.

Saying that more than 75 countries had asked for negotiations over the tariffs, Trump said he “authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” Wall Street stocks rocketed higher suddenly Wednesday. Shortly after Trump announced his latest pivot, the S&P 500 surged 6.0 percent higher to 5,281.44, snapping a brutal run of losses since Trump’s “Liberation Day” tariff announcement a week ago. 

Trump’s sudden reversal came less than 24 hours after steep new tariffs kicked in on imports from dozens of trading partners. The new trade barriers have hammered markets, raised the odds of recession and prompted retaliatory responses from China and the European Union. — Agencies