What To Know: The gains followed a surprise announcement from Trump of a 90-day suspension on reciprocal tariffs for all countries that have not retaliated against previous U.S. trade measures. The move excludes China, which instead will face a sharp increase in tariffs.

Trump’s decision to reward non-retaliatory nations with a temporary 10% tariff and delay further duties appears to have eased investor fears around escalating trade tensions.

In contrast, Trump sharply criticized China in a Truth Social post, accusing it of exploiting the U.S. and pledging a new 125% tariff on Chinese imports. He stated that over 75 countries had refrained from retaliating and would benefit from the pause.

At a White House press conference, Treasury Secretary Scott Bessent emphasized that the changes reflect an attempt to address long-standing global trade imbalances. He noted that markets previously misunderstood the scale of Trump’s trade measures and described the 10% reciprocal tariff as a temporary floor that adds clarity going forward.

Bessent also accused Beijing of exacerbating the trade deficit and portraying itself as an uncooperative actor in global trade. He suggested that the new policy would give the U.S. greater leverage to force changes in its trade relationship with China.

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