On Wednesday, President Donald Trump took to Truth Social to announce significant changes in U.S. trade policy with China. He revealed that the United States will increase tariffs on Chinese goods to 125%. At the same time, he mentioned that tariffs on other countries would be paused for 90 days. This pause aims to allow the White House to negotiate new trade agreements.
Following this announcement, the stock markets reacted positively. The S&P 500 surged nearly 7%, while treasury yields, which had been rising earlier in the day, fell sharply. This quick market response shows how investors are reacting to the news.
Treasury Secretary Scott Bessent commented on the situation, saying that the president’s strategy has put China in a difficult position. He emphasized that the U.S. is ready to work with allies and trading partners who did not retaliate against the new tariffs.
This move marks a significant shift in U.S.-China trade relations, highlighting ongoing tensions between the two nations. As the White House works on new trade deals, many will be watching closely to see how these changes will impact both economies.