Trump Temporarily Halts Tariffs Amid Trade Tensions

U.S. stocks surged after President Trump announced a 90-day pause on tariffs for most countries, excluding China, which will face a steep 125 percent tariff. The decision follows retaliatory actions by the E.U. and ongoing trade tensions.

U.S. stocks saw significant gains Monday after President Trump announced a temporary 90-day pause on tariffs affecting most countries. However, he made it clear that China would not be part of this pause, and its exports to the U.S. would be subject to a hefty 125 percent tariff. This decision aligns with the recent escalation of trade friction between the U.S. and China, where Beijing retaliated by increasing its own tariffs on U.S. goods to 84 percent.

The White House has indicated a plan to reduce the general tariff level to 10 percent, exempting Canada and Mexico—two major trading partners. This unexpected shift in policy comes as European Union officials prepared to introduce their first retaliatory measures, amid a broader sell-off in U.S. bonds, traditionally seen as safer investments during market volatility.

When asked about the rationale for the pause, Trump noted, "I thought that people were jumping a little bit out of line. They were getting yippy. They were getting a little bit afraid." He emphasized that the situation is still uncertain, stating "Nothing is over yet," and claimed that there are "many more than 75" countries expressing interest in trade agreements.

The Treasury Secretary endorsed the tariff pause as part of Trump's overarching strategy, which he suggested had been in the works all along. As this trade saga unfolds, the implications for international markets and diplomacy remain to be seen amid increasing uncertainty.