US stock markets closed higher but well off intraday highs on Wednesday, even as President Donald Trump pledged to reduce tariffs on China “substantially,” while denying intention to fire Fed Chair Powell. The S&P 500 surged by 3.6% before retreating sharply and finished 1.67% higher, although posting a second consecutive gain.
On Wednesday, the Wall Street Journal reported that the Trump administration is considering reducing tariffs on China to a range between 50% and 65%. A tiered approach may be adopted, with levies of 35% on goods deemed non-critical to national security, while retaining tariffs of at least 100% on essential Chinese imports. While these figures represent a sharp reduction from the current 145%, the proposed trade barriers remain significant.
