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.
Blue wave sweeps across NY ... Teen sentenced for fatal stabbing at house party ... Teacher assistant fired after stalking allegations ... Governor's race wrap
Blue wave sweeps across NY ... Teen sentenced for fatal stabbing at house party ... Teacher assistant fired after stalking allegations ... Governor's race wrap
