Stocks jumped sharply on Wednesday after President Trump unexpectedly announced a 90-day pause on his “reciprocal” tariffs, with the S&P 500 climbing 9.5 per cent by market close.
Wall Street reacted positively to the policy reversal, showing relief that President Trump would not immediately implement most of his planned tariffs, which had caused markets to plummet and threatened global trade.
However, the tariff relief won’t apply to China, one of America’s largest trading partners. Instead, Trump said he would increase tariffs on Chinese exports to 125 per cent after Beijing announced new retaliatory measures, BusinessDay reports.
The White House later clarified details about the tariffs. Canada and Mexico’s tariff situation remains unchanged, including the exemption for goods traded under the U.S.-Mexico-Canada Agreement.
The 10 per cent baseline tariff that was scheduled to begin on April 5 did not take effect for Canada and Mexico, and neither country will face this baseline tariff now. Officials had earlier indicated that the 10 per cent universal tariff would include Canada and Mexico.
