In a dramatic pivot, President Trump announced a 90-day tariff reprieve for key trading partners Wednesday – while simultaneously turning up the heat on China with even steeper duties. The surprise reversal sent the US stocks soaring, marking a stunning rebound after days of pandemic-level volatility that wiped trillions from global markets and sent bond yields spiralling. Treasury Secretary Scott Bessent framed the move as a calculated negotiating tactic, insisting the whiplash-inducing policy shifts were designed to force trading partners to the bargaining table.Yet the relief comes with caveats: a 10% blanket tariff remains on most imports, while existing steel/aluminium duties and fentanyl-related tariffs for Canada/Mexico stay intact. The exception? China, which faces even tougher measures despite Trump's claim that Beijing "wants to make a deal." As markets catch their breath, one thing is clear – this temporary truce does little to resolve the fundamental uncertainty surrounding Trump's unorthodox trade war tactics. With officials prioritizing talks with other nations first, traders should brace for more turbulence ahead.
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