After days of turmoil, stocks on Wall Street and across Asia saw huge surges in reaction to Trump's announcement that he was halting a levy hike for almost all nations for 90 days.
Beijing hit back with retaliatory levies of 84 percent on US imports, which came into effect just after midday (0401 GMT) on Thursday, the latest salvo in an escalating standoff between the world's two largest economies.
“People were jumping a little bit out of line, they were getting yippy, a little bit afraid,“ Trump said. “Yippy” is a term in sports to describe a loss of nerves.
“I saw last night where people were getting a little queasy,“ he said, as US bond yields rose during the stocks sell-off -- a major economic red light as American sovereign government debt is normally seen as a safe haven for investors in troubled times.
“A deal’s going to be made with China. A deal’s going to be made with every one of them,“ Trump said, adding however that China's leaders “don’t quite know how to go about it.”
As Beijing weighs the costs of further escalation, Bloomberg reported that its top leadership will meet Thursday to hash out plans for additional stimulus to boost its fragile economy -- already ailing before the trade war.
Markets have been on a rollercoaster ride since Trump's announcement of sweeping global tariffs one week ago on what he called “Liberation Day” before his dramatic pause on Wednesday.
But as markets swayed yet again, Trump said in a surprise announcement on his Truth Social network that “I have authorized a 90 day PAUSE“ on the higher tariffs, while the baseline 10 percent would remain.
Japan -- which had been slapped with 24 percent under the so-called reciprocal tariffs -- said it welcomed the news but still “strongly” demanded that Washington reconsider other levies on its steel and auto exports.
The 27-nation bloc will hit more than 20 billion euros' worth of US products, including soybeans, motorcycles and beauty products.
'Be cool!'
The S&P 500 surged 9.5 percent to 5,456.90, snapping a brutal run of losses over the past week.
Stocks in Chinese economic powerhouse Shanghai were also up, despite Trump's decision to further hike tariffs.
“I’m telling you, these countries are calling us up kissing my ass,“ Trump told a dinner with fellow Republicans on Tuesday night.
The billionaire former property tycoon has particularly raged against China, accusing it of excess production and “dumping” inexpensive goods on other economies.
Separately, US Defense Secretary Pete Hegseth 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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