The Latest: Stocks surge after Trump announces 90-day pause on tariffs but raises taxes on China
The headquarters of Bank of Japan (BOJ) is seen in Tokyo on Aug. 18, 2023. Credit: AP/Shuji Kajiyama
Facing a global market meltdown, President Donald Trump on Wednesday abruptly backed down on his tariffs on most nations for 90 days but raised his tax rate on Chinese imports to 125%.
U.S. markets surged in response.
The S&P 500 was up 7.8% in afternoon trading. It had been down earlier in the morning amid worries about Trump’s trade war and whether it would cause a recession, as economists fear. But it spiked immediately after Trump sent the social media posting that investors have been waiting for. The Dow Jones Industrial Average was up 2,476 points, or 6.6%, as of 1:35 p.m. Eastern time, and the Nasdaq composite was 9% higher.
Investors have been desperate for Trump to ease up on his tariffs, which economists say could cause a global recession and increase inflation.
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