Donald Trump announces 90-day tariff pause; DOW shoots up 2,400 points, NASDAQ 1,400

The US Dolla Index climbed after Trump announced a 90-day pause on tariffs. It was last up 0.107% at 102.880

“Each one of those is going to be separate, bespoke negotiation,” Bessent said.

US Treasury Secretary Scott Bessent said it took President Trump 'great courage' to make the announcement.

“It took great courage, great courage for him to stay the course until this moment,” Bessent told reporters at the White House moments after the announcement.

White House Press Secretary Karoline Leavitt is currently addressing the media. She explained that President Trump’s decision to raise tariffs on China comes in direct response to Beijing’s latest retaliatory measures. “When you punch the United States of America, President Trump is going to punch back harder,” she said.

Leavitt also revealed that over 75 countries have reached out to the administration seeking negotiations, saying the response has been "overwhelming".

“In the meantime,” she added, “there will be a 90-day pause on reciprocal tariffs as these talks move forward and the tariff rate will be reduced to a uniform 10% during this period" except for China.

US Treasury Secretary says Mexico, Canada included in 10% tariff

White House has said that tariff level will be brought down to universal 10% during negotiations.

US President Donald Trump has announced a 90 day pause and lowered reciprocal tariffs. He also announced a further escalation of the ongoing trade war with China --- hiking tariffs to 125%.

"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. 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. Conversely, and 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!" he wrote on Truth Social.

The US corporate bond market has shut again after opening for just one bond offering on Tuesday, as spreads in the week after President Donald Trump's Liberation Day tariffs have widened the most since 2023's regional banking crisis.

Since Trump's tariff announcements exactly one week ago on April 2, corporate bond spreads, or the cost to borrow, have widened to their highest levels in nearly two years.

The bond market's first new deal in three days occurred on Tuesday, a $4.2 billion, three-part transaction from human resources provider Paychex. It was the first deal since Swiss cement maker Holcim's four-part, $3.4 billion issuance on April 2.

Both the high-grade and junk bond spreads may have widened again on Wednesday morning, driven in part by early morning U.S. Treasury market volatility, as Chinese and other Asian funds offloaded Treasuries in high volumes.

(via Reuters)

“We can probably reach a deal with our allies” at the end of the day, Bessent said when asked on Wednesday.

“They’ve been good military allies, not perfect economic allies. And then we can approach China as a group," Bloomberg quoted him as saying.

Oil prices fell to a four-year low and traded below $60 a barrel on Wednesday, while several commodities, including coffee, tumbled as the trade war between China and the U.S. escalated, with Beijing announcing steeper tariffs on U.S. imports.

Asian and European equities fell and U.S. markets opened slightly lower as the rollout of steep U.S. tariffs, including a 104% duty on some Chinese goods, deepened fears of a global recession.

Chinese authorities have issued advisories for citizens who are visiting the US or studying in the country.

“Recently, due to the deterioration of China-US economic and trade relations and the domestic security situation in the United States, the Ministry of Culture and Tourism reminds Chinese tourists to fully assess the risks of traveling to the United States and be cautious,” the ministry said in an alert.

The imposition of a 26% tariff on Indian exports, coupled with even higher duties on some other countries such as China, has raised alarm among Indian exporters in sectors such as gems and jewellery, chemicals, pharmaceuticals and engineering goods.

Finance Minister Nirmala Sitharaman said sustained growth with a focus on domestic demand was possible.

"We are at a situation where, because of the global uncertainties, we will need every support both from the central bank and from the (finance) ministry," she told reporters during a trip to London for the 13th UK-India economic and financial dialogue.

The Chinese commerce ministry slapped restrictions on more than a dozen US defence firms on Wednesday after President Donald Trump made good on his threat to impose an additional 50% tariff on Chinese imports.

Beijing added 12 US companies to a control list that prohibits exports of dual-use items and another six to its "unreliable entities" list, which allows Beijing to take punitive actions against foreign entities, according to commerce ministry statements.

External Affairs Minister S Jaishankar indicated on Wednesday that the impact of US President Donald Trump's reciprocal tariffs remained unknown at present. He insisted that New Delhi's strategy was to firm up a bilateral trade pact with Washington by fall of this year. Jaishankar also said India is perhaps the only country to reach an understanding with Washington to seal a trade deal after Trump assumed the presidency for the second time. The comments came hours after Trump's sweeping tariffs came into force, triggering massive trade disruptions and fears of a global economic recession.

"I don't think it's possible to speak about what would be the impact, because we don't know. What is our strategy? I think that's pretty clear. We decided that we will engage the Trump administration early on this set of issues and we were very open with them, very constructive with them as they were with us, and what we agreed to do was to try to negotiate a bilateral trade agreement by fall of this year," Jaishankar said at News 18 Rising Bharat Summit.

Following talks between Prime Minister Narendra Modi and Trump in Washington DC in February, the two sides announced to negotiate the first tranche of the BTA by the fall of 2025.

“104% tariffs in China are not enough. I’m advocating 400%,” he insisted while appearing on a CNN panel last night.