President of the United States Donald Trump announced an increase in tariffs on Chinese goods to 125%, as well as a 90-day pause for reciprocal tariffs and 10% tariffs for other countries. Trump noted that this decision was a result of Beijing’s lack of respect for global markets.
This is reported by Бізнес • Медіа
The American leader explained that the decision to pause tariffs for other countries was made in response to requests from 75 nations that approached the U.S. with proposals to discuss trade issues, tariffs, and trade barriers, while not imposing any tariffs in response.
Market Reaction to Trump’s Announcement
Following the announcement of the tariff pause, markets reacted positively. The S&P 500 index soared by 9.52%, reaching 5,456 points, the NASDAQ Composite rose by 12.16% to 17,124 points, and the Dow Jones increased by 7.87% to 40,608 points. Brent crude futures traded around $64.8 per barrel.
EU and Its Reaction to the Tariffs
The European Union also decided to postpone the implementation of the first package of countermeasures in response to Trump’s new tariffs on steel and aluminum for 90 days. The bloc aims to give negotiations a chance but will continue to work on preparing a response to other tariff restrictions announced by the U.S. president.