https://www.cnn.com/politics/live-news/trump-tariffs-cn-town-04-10-25#cm9Actucu00003b6Oyc2Tlleas USAs fired after President Donald Trump announced a three-month break in all “reciprocal” tariffs, with S&P 500 registering your best day since October 2008.
It was also the third best day for the reference index since its modern version was created in 1957.
But the second largest economy in the world. Trump said they would be increased to 125% after Beijing announced new retaliatory tariffs against the US on Wednesday (9). These rates on all US imports of 84%are already in force.
All other countries that were subject to reciprocal tariffs would have their rates reduced again to the 10%universal rate, Trump said.
Historical
The suspension of the tariffs triggered a massive rally from Wall Street, with the.
Asian and European markets also recovered on Thursday (10).
Saved neighbors
Mexico and Canada will not face 10%rates, a White House employee told CNN.
Almost all products from both countries will be charged at 25%unless they are in accordance with the US-MEXICO-CANADA agreement. But that does not apply to the sectoral tariffs imposed by Trump.
Trump’s retreat
Historically, the Treasury titles recover in times of sharp drop in the stock market as investors transfer active to a safe haven.
The alarm within the Treasury Department on signs of difficulties in the US government’s title market played a key role in Trump’s decision to suspend “reciprocal” tariffs, according to three sources.
Trump acknowledged that he was watching the turbulence. “The title market is very complicated,” he told reporters.
Closing of agreements
Treasury Secretary Scott Bessent said the break would give time to negotiate new trade agreements.
Trump said he intends to make “fair agreements for everyone,” including China, who he said, wants to reach an agreement.
The Secretary of Commerce, Howard Lutnick, said today that he is not getting involved with Chinese tariff authorities or Bessent. But Trump “expects to have conversations” with Chinese president Xi Jinping, he said.
Joe Brusuelas, chief economist at consulting firm RSM US, warned that the change in tariff policy may not be sufficient to avoid a recession.
In a note to customers yesterday afternoon, Goldman Sachs economists projected a 45% chance of recession in the next 12 months.
