The global trade landscape witnessed yet another shakeup on Wednesday, as U.S. President Donald Trump declared a 90-day tariff pause for most countries while simultaneously imposing a dramatic 125% tariff hike on China.
The announcement comes amidst ongoing tensions between the two economic powerhouses, signaling intensified trade warfare.
Trump justified the move, stating it was a necessary step to address unfair trade practices by China. Meanwhile, a temporary reciprocal tariff reduction of 10% for most trade partners was authorized during the 90-day negotiation period.
The markets responded enthusiastically, with Wall Street surging to new heights. The Dow Jones soared by an unprecedented 2,000 points, while NASDAQ recorded an 8% jump.
While details of future negotiations remain unclear, experts believe this development could pave the way for significant shifts in global trade alliances.
