President Trump pauses tariffs causing stock market surge, escalates trade war with China

President Trump announced a 90-day pause on tariffs for 75 countries that had reached out to negotiate, sending stocks soaring.

(NBC)- In a surprising shift, President Trump announced a 90-day pause on tariffs for 75 countries that had reached out to negotiate, sending stocks soaring and offering a moment of relief to markets. Trump explained that the move showed flexibility in trade negotiations, but emphasized that the baseline 10% tariffs will remain in place, along with previous tariffs on Mexico and Canada. However, all eyes are on the escalating trade war with China.

The President has decided to hike tariffs on Chinese imports to 125% following China’s retaliatory tax increases, which reached 84% overnight. “China wants to make a deal. They just don’t know how quite to go about it,” Trump remarked. The U.S.-China trade dispute is far-reaching, with potential for higher prices on a wide range of goods — from electronics and apparel to fireworks and even Tonka toy trucks. Business leaders are already feeling the impact. “The harm that’s being caused is really catastrophic. And please make a deal quickly,” said Jay Foreman, CEO of Basic Fun!

While the President negotiates with other countries, his administration insists the recent stock market downturns did not influence his decision to pause tariffs. “Absolutely not. The tariff plan for the President, look, he’s trying to fix the fundamental trade imbalances that have been going on for this country for 35 years,” said U.S. Commerce Secretary Howard Lutnick.

Despite this, some lawmakers, including Senator Rand Paul (R-KY), argue that the recent market chaos underscores the negative impact of tariffs. “It’s not just me that thinks the tariffs are bad for the economy,” Paul said, urging the White House to create a comprehensive plan within the next 90 days.