Trump scales back tariffs

Markets were ecstatic today after President Trump said he would pause some — but not all — of his sweeping tariffs.

• Trump offered a 90-day reprieve on the reciprocal tariffs he had imposed on dozens of countries.
• But he kept a baseline 10% tariff in place, and increased levies on Chinese goods to 125%.

💬 "People were jumping a little bit out of line," Trump told reporters as he explained his decision. "They were getting a little bit yippy. They were getting a little bit afraid."

• "Over the last few days it looked pretty glum," Trump said.

⚡️ Between the lines: The 90-day pause brings the policy roughly in line with what many investors thought Trump would do in the first place.

• And it shifts a global trade war largely into a U.S.-China trade war — which will still have enormous impacts for U.S. consumers.

📈 By the numbers: The move sent stocks on a blistering rally.

• The S&P 500 index ballooned by more than 9%.
• The Nasdaq closed up 12%, its biggest one-day gain in 24 years.
• The Dow soared nearly 8%, topping 40,000 points again.

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