President Trump announced a 90-day pause on higher tariffs for most countries.
The pause was due to over 75 countries approaching the U.S. for negotiations and not retaliating.
Despite the pause, Trump sharply increased tariffs on Chinese goods to 125% immediately.
Just hours before, he had already raised tariffs on China to 104%, prompting China to respond with 84% tariffs on U.S. goods.
Only a flat 10% tariff on all countries, which began Saturday, remains in place.
Trump accused China of continuing to exploit global markets and the U.S. economy.
The European Union responded with tariffs on over €20 billion worth of U.S. products like soybeans and motorcycles.
However, the EU did not react to the latest 20% U.S. tariffs that began at midnight Wednesday.
A week earlier, Trump had declared “Liberation Day” and set the 10% baseline tariffs globally.
He planned higher rates for countries with large trade surpluses, like China and the EU.
Financial markets were shaken for days due to the escalating trade war.
After the pause was announced, Wall Street stocks surged, with the S&P 500 jumping 6%.
European and Asian markets had dropped earlier, along with oil prices and the U.S. dollar.
U.S. bond yields rose amid a sell-off, signaling investor concern.
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