Trump ‘temporarily’ reverses recent tariffs, with ONE notable exception

Trump announces 90-day pause on tariffs for non-retaliating countries

The duties faced by China will now rise to 125% effective immediately.

Markets Response - Against USD

• CAD       rallies           1.2%

• CNY       weakens      0.8%

• GBP       up                   0.15%

• EUR       up                   0.3%

 President Donald Trump says he is pausing his tariffs scheme for 90 days on all trading partners who have not retaliated against the U.S.

In a post on X just before 1:30 p.m. CET, Wednesday, Trump wrote:

“Based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!”

However, Trump said duties against China would now climb to a total of 125%, effective immediately.

To me, it is also notable that this came just after Jamie Dimon (the well-respected CEO of JPMorgan Chase) mentioned his fear of an imminent US recession!
- Perhaps Trump DOES pay attention to financial markets and their participants
- Perhaps this is the famous ‘Trump put’ being put into action

Trump continued: "Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately," he wrote. "At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable."

Stock market futures suggest a 10% swing back into the green. Some recent YEARS have passed without a 10% swing. This is potentially the 3rd day in a row of such a peak-to-trough move.