In a dramatic shift that stunned global markets, President Donald Trump on Wednesday announced a 90-day pause on most new tariffs, temporarily easing the economic pressure on dozens of countries while significantly ramping up penalties on China.
The announcement, which came just a day after sweeping duties kicked in, followed a period of intense financial market turmoil that wiped trillions from global stock values and sent U.S. bond yields soaring. Trump's reversal quickly turned markets around, sending the S&P 500 up more than 9% and fueling a global rebound.
The White House echoed the strategy behind the move in a pointed post on X: "DO NOT RETALIATE AND YOU WILL BE REWARDED", accompanied by a video clip of Treasury Secretary Scott Bessent addressing reporters outside the West Wing.
“As I told everyone a week ago, in this very spot, do not retaliate and you will be rewarded,” Bessent said. “And we saw the successful negotiating strategy that President Trump implemented a week ago today. It has brought more than 75 countries forward to negotiate. It took great courage — great courage — for him to stay the course until this moment.”