Global Markets Soar After Trump Halts Tariff Plans, but China Faces Increased Duties

Global stock markets experienced a significant boost on Wednesday following President Trump’s surprising announcement of a 90-day pause on his planned “reciprocal” tariffs. The S&P 500 surged by 9.5% by market close, as Wall Street reacted with relief to the delay, easing concerns about the immediate implementation of tariffs that had previously caused market instability and threatened global trade relations.

Despite the positive market reaction, the tariff reprieve does not extend to China. President Trump confirmed that the U.S. would impose a hefty 125% tariff on Chinese exports, a retaliatory move in response to Beijing’s latest countermeasures. This decision further escalates tensions between the two countries, which are among the world’s largest trading partners.

In a related clarification, the White House confirmed that the tariff situation for Canada and Mexico remains unchanged. The previously anticipated 10% baseline tariff that was supposed to begin on April 5 will no longer apply to these countries, who are exempt under the U.S.-Mexico-Canada Agreement (USMCA). This exemption reflects the ongoing trade arrangement between the U.S. and its North American neighbors.

As the market digests these developments, experts note that while the tariff freeze may offer short-term relief, the ongoing trade conflict especially with China continues to pose risks to global economic stability. The 90-day pause could provide time for further negotiations, but the heightened tariffs on Chinese goods indicate that tensions are far from being resolved.

Source: business day