Share prices in the US started regaining after President Donald Trump announced that he would adjourn his controversial tariff hikes on goods from more than 158 countries globally.
Trump instead said his administration will impose a 10 per cent import tax rate as White House backtracked on tariff hikes for its trade partners who had accepted to negotiate.
He had insisted he would not relent on his ugly tariff war but now says all countries that did not retaliate will get an amnesty and only face a blanket US tariff of 10 per cent up to July.
The American president, however, escalated his trade war with China saying he would further increase tariffs charged on Chinese goods immediately to at least 125 per cent.
“People were jumping a little bit out of line. They were getting yippy,” said Trump to reporters who had asked him why he had ordered the halting of the increased tariffs.
Read More
In a post on his Truth Social platform, Trump claimed that more than 75 countries had reached out to the US seeking to negotiate a solution to the tariff hikes since last week.
The hiked import levies announced by White House last week resulted in the plunging of major US stocks with analysts warning of an economic recession in the US and globally.
Fears of an escalation of the reciprocal tariffs by Trump spread fears in the American bond market prompting many investors to start dumping their US government bonds in fright.
But following the announcement of the 90-day suspension of the new levies, most stocks regained in the securities exchange with most listed firms jumping more than 10 per cent.
While escalation his tariff war with China, Trump accused Beijing of disrespecting America after the Asian economic giant retaliated by imposing tariffs of 84 per cent on US imports.
Trump’s reciprocal tariffs on all goods imported into the US in the greatest cataclysm of global trade in more than 40 years with many experts raising concerns over its intentions.
