President Donald Trump has announced a 90-day suspension of new tariffs on most U.S. trading partners, offering temporary relief to global markets. However, he simultaneously escalated tensions with China by increasing tariffs on Chinese goods from 104% to 125%. The move caused a major rally in the stock market, with the S&P 500 soaring 9.5%, one of its largest gains since World War II. The tariff pause applies only to countries that have not retaliated against U.S. trade measures. This strategy signals a shift in Trump’s trade policy, focusing pressure more directly on China while easing tensions elsewhere.
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