Daily Summary
We’re wrapping up another day of historic news here in the US, but my Australian colleagues have a new day’s updates on the global tariff chaos here. (Someone at the Guardian is always awake.)
An updated summary of today’s key events:
Global markets surged after Trump announced his 90-day tariff pause, in one of the biggest gains since the second world war. The S&P 500 surged 5.6%, while the Nasdaq has jumped over 8%. Trump’s Truth Social statement suggests he has backed down on tariffs on most countries for 90 days, applying instead a 10% tariff.
Speaking to reporters on Wednesday about his tariffs policy, Trump acknowledged people were getting “a little bit afraid” and said: “I thought that people were jumping a little out line” and getting “yippy”. He added that his announcement on the 90-day pause and 125% raise on China could be “temporary.”
Addressing reporters at the White House on Wednesday, treasury secretary Scott Bessent said the latest changes in Donald Trump’s tariffs policy was Trump’s “strategy all along.” He said: “This was his strategy all along, and that you might even say that he goaded China into a bad position, they responded.”
Some world leaders responded positively to the tariff pause, including Canadian Prime Minister Mark Carney, who called it a “welcome reprieve.”
Trump’s ‘buy’ tip on social media before his announcing his tariffs pause made money for investors who listened, and also raised concerns for ethics experts, who questioned whether the post amounted to Trump giving stock tips on inside information, a violation of securities law. A White House spokesman said the president has the right to “reassure the markets.”
Asked when exactly he had decided to implement his tariff pause, Trump gave a muddled answer, saying that he had been considering it for some time, but also that “it came together early this morning,” and adding that “we didn’t have access to lawyers. We just wrote it up from our hearts, right?”
China announced new tariffs of 84% on imports of all US goods, up from the 34% previously announced, hours after US tariffs on Chinese products went up to a staggering 104%. China’s retaliation sent stock markets falling further with major indices down in the UK, Germany, France and Spain.
The EU announced 25% tariffs on a range of US imports in a first round of countermeasures. The 27-member bloc has agreed to impose retaliatory tariffs on €21bn (£18bn) of US goods, targeting farm produce and products from Republican states. All member states voted for the retaliation, with the exception of Hungary.
South Korea’s top trade envoy Cheong In-kyo said that Donald Trump’s tariff reprieve had provided room for negotiations, as the country seeks to reduce tariffs through talks, Reuters reports.
Cheong flew to Washington to negotiate with US fficials after President Trump announced a 25% tariff on its key Asian ally among a new set of sweeping tariffs.
In a stunning reversal on Wednesday, Trump said he would temporarily lower the hefty duties he had just imposed on dozens of countries while further ramping up pressure on China.
Cheong found the reprieve “positive”, but swift consultations with Washington are still needed to minimise impact, considering South Korea’s exports to China, and any balloon effect, he told reporters.
