Following days of global market turmoil, Wall Street stocks surged in reaction to Trump’s sudden announcement on his Truth Social network.
Only a flat rate of 10 percent tariffs on all countries that took effect on Saturday will remain in place. This marked a stunning reverse from often punishing levies that hit even many of the closest US allies.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125 percent, effective immediately,“ Trump said.
“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,“ Trump said.
‘BE COOL!’
The 27-nation bloc, which Trump has accused of being created to “screw” the United States, will hit more than 20 billion euros’ worth of US products, including soybeans, motorcycles and beauty products.
Trump announced a week ago on what he called “Liberation Day” that he would impose a 10 percent baseline tariff on all countries, taking effect Saturday.
Amid stock market panic, Trump earlier Wednesday urged Americans to “BE COOL!” and said that “Everything is going to work out well”
Minutes later, the S&P 500 surged 6.0 percent to 5,281.44, snapping a brutal run of losses over the past week.
US bond yields had also risen amid a sharp sell-off -- a major economic red light as sovereign government debt is normally seen as a safe haven for investors in troubled times.
Before his pivot, Trump said world leaders were rushing to negotiate “tailored” deals with the United States, with Japan and South Korea among those sending delegations to Washington.
But China doubled down.
Bessent earlier warned countries at a banking summit Wednesday that aligning with Beijing “would be cutting your own throat.”
The billionaire former property tycoon has particularly raged against China, accusing it of excess production and “dumping” inexpensive goods on other economies.
And US Defense Secretary Pete Hegseth then warned against Chinese “threats” as he visited Panama, whose canal is at the center of a row between Beijing and Washington.
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