President of the United States Donald Trump announced an increase in tariffs on Chinese goods to a record 125%. At the same time, he implemented a 90-day pause in the imposition of tariffs for other countries, applying a 10% tariff.
This is reported by Finway
Trump emphasized that this decision was made due to a lack of respect for global markets from Beijing. He also noted that 75 countries have approached the U.S. to discuss issues related to trade, tariffs, and trade barriers, with no countermeasures having been implemented.
Market Reaction to the New Tariffs
Following Trump’s announcement of the tariff pause, U.S. stock indices recorded significant gains. The S&P 500 index rose by 9.52%, reaching 5,456 points. The NASDAQ Composite increased by 12.16% to 17,124 points, while the Dow Jones rose by 7.87% to 40,608 points. Brent crude oil futures traded at approximately $64.8 per barrel.
EU’s Response to the New Tariffs
The European Union also decided to postpone the implementation of the first package of countermeasures in response to the tariffs imposed by Trump on steel and aluminum for 90 days. The bloc is trying to allow for negotiations but will continue to work on preparing a response to other tariff restrictions announced by the U.S. president.