Africa & World

President Donald J. Trump announced a significant shift in his trade policy on Wednesday, reducing tariffs on most U.S. imports to a flat 10% and suspending steeper levies on dozens of countries for 90 days.

In a striking exception, tariffs on Chinese goods were raised to 125%, escalating tensions with Beijing and reshaping the global economic landscape.

The decision, detailed in a statement on Truth Social and elaborated upon in brief remarks to reporters, follows a tumultuous week in which Mr.

Trump’s initial tariff plan unveiled April 2 and implemented at midnight Wednesday—sent markets into a tailspin.

That earlier policy imposed a baseline 10% tariff on all imports, with “reciprocal” rates ranging from 11% to 50% targeting nearly 90 countries based on their own trade barriers. The result was a $6.6 trillion loss in global stock market value and a surge in U.S. bond yields to 4.5%, prompting urgent calls from trading partners.

Citing diplomatic outreach from more than 75 countries, Mr. Trump authorized the 90-day pause and tariff reduction to 10%, effective immediately, for most nations. “They’ve agreed to negotiate a solution,” he wrote, urging allies to refrain from retaliatory measures. Treasury Secretary Scott Bessent described the move as a calculated step to foster trade talks, with delegations from Japan, Israel, and other nations already preparing to visit Washington.

Canada and Mexico, however, remain subject to separate 25% tariffs linked to border security concerns, though goods compliant with the U.S.-Mexico-Canada Agreement are exempt.

China, by contrast, faces a sharply intensified penalty. After Beijing retaliated Wednesday with an 84% tariff on U.S. export, Trump pushed the rate to 125%.

The White House framed the increase as a response to China’s unwillingness to engage constructively, with Commerce Secretary Howard Lutnick stating on X that Beijing had “chosen the opposite direction” from global cooperation.

The administration signaled that further measures could follow if China does not alter its stance.

Financial markets welcomed the broader tariff relief. The S&P 500 surged 9.5%, its largest single day gain since 2008, while the Nasdaq climbed 12.2%. Shares of import-heavy companies like Wayfair and Nike rose 20% and 10%, respectively. Oil prices increased by 4%, and Asian markets followed suit Thursday, with Japan’s Nikkei up 9% despite uncertainty over China’s next moves.

Beijing condemned the U.S. escalation, with Foreign Ministry spokesperson Lin Jian calling it an “abuse of tariff power” and promising unspecified countermeasures. State media warned of potential restrictions on American agricultural goods and cultural exports, raising fears of a deeper rupture in the $575 billion U.S.-China trade relationship.

Domestically, the policy shift drew varied reactions. Congressional Democrats, including Senator Chuck Schumer of New York, accused Mr. Trump of backtracking under pressure, while some Republican allies praised the flexibility as strategic.

Business leaders expressed cautious optimism but noted that even a 10% tariff could strain supply chains and raise consumer prices over time.

U.S. stock markets opened sharply lower on Monday, extending losses from the previous week, as escalating concerns over President Donald Trump’s proposed tariffs raised fears of a global economic slowdown and weakened investor confidence.

The Dow Jones Industrial Average fell by 1,200 points, or 3.2%, in early trading. The S&P 500 dropped 3.4%, entering bear market territory—defined as a decline of 20% or more from a recent high. The tech-heavy Nasdaq Composite also slid 3.96%.

The downturn followed steep losses in global markets, with Asian and European indices experiencing historic declines. The S&P 500, which hit an all-time high on February 19, reached bear market status in less than seven weeks—marking one of the fastest transitions from peak to bear market in history. The fastest on record occurred in early 2020 during the COVID-19 pandemic.

Investor sentiment remains fragile amid fears that Trump’s sweeping tariffs—particularly targeting China and key trade partners—could disrupt global supply chains and dampen U.S. economic growth. The tariffs, part of the administration’s protectionist trade policies, have already sparked retaliatory threats from affected countries, fueling market volatility.

Despite the widespread selloff, some analysts believe a bottom may be near. James Demmert, Chief Investment Officer at Main Street Research, noted that the scale and pace of the recent declines point to panic-driven selling.

“We are getting close to a bottom,” Demmert said. “The fact that stocks have dropped so significantly in these deep intraday moves is a clear sign of indiscriminate and fear-based selling. When this happens, we tend to soon see significant rallies.”

Stocks are now trading at approximately 15 times projected future earnings, a level considered historically inexpensive. Analysts suggest that such valuations could attract bargain hunters and help spark a rebound if investors believe the market is oversold.

Still, the continued turbulence may complicate the message investors are attempting to send to the White House. The market turmoil could pressure the administration to reconsider or moderate its trade stance, potentially opening the door for negotiations with key economic partners.

Stock markets in the United States and Europe declined on Wednesday as investors remained cautious ahead of U.S. President Donald Trump’s expected announcement of new tariffs.

The dollar and oil prices dipped, while gold, considered a safe-haven asset, neared a record high.

Despite slight gains in Tokyo and stable Chinese markets, European stocks fell, led by losses in Frankfurt. Wall Street’s major indexes also opened lower.

“For traders and investors, today represents a day of huge uncertainty as we weigh up the potential for retaliatory tariffs and a tit-for-tat trade war,” said Joshua Mahony, an analyst at Scope Markets.

Global equities have faced pressure in anticipation of Trump’s announcement, which he has referred to as “Liberation Day.” He has argued that the United States has been “ripped off” for years and has warned that both allies and rivals could be affected by the new trade measures.

While Trump had initially suggested the tariffs would mirror levies imposed by other nations, reports indicate he is also considering a blanket 20-percent tariff or a plan that grants certain countries preferential treatment.

The White House has confirmed that Trump will unveil his decision at 4:00 p.m. in Washington (2000 GMT), after U.S. markets close. The president has promised that the move will usher in a “golden age” for American industry, though officials acknowledged Tuesday that final details were still being discussed.

Chris Weston, an analyst at Pepperstone Group, noted that if the tariffs take effect immediately, markets could gain some clarity, though it would limit room for negotiations.

“This scenario—while hardly a positive for economics or earnings assumptions—would increase the conviction behind how we respond to the ‘facts,’” he said. “That said, life is never straightforward, and we will still need to consider the counter-response from other countries.”

Concerns over a potential global trade war have intensified, with several nations warning they are preparing countermeasures. Economists have cautioned that the tariffs could slow economic growth and reignite inflation, raising doubts about the likelihood of further interest rate cuts from central banks.

Former U.S. President Donald Trump has suggested that he might seek a third term in office, despite constitutional restrictions limiting presidents to two terms.

Speaking to reporters in the Oval Office on Monday, Trump claimed that Americans want him to run again. When asked about the possibility of a third term, he responded, “People are asking me to run. I don’t know. I never looked into it. They do say there’s a way you can do it, but I don’t know about that.”

Trump also entertained the idea of a hypothetical election matchup against former President Barack Obama, who served two terms from 2009 to 2017. “That would be a good one, I’d like that,” he said.

His remarks follow comments made in an interview with NBC News on Sunday, where he insisted he was “not joking” about the possibility of seeking a third term.

Trump, 78, served as president from 2017 to 2021 and began his second term on January 20. However, the U.S. Constitution’s 22nd Amendment, ratified in 1951, explicitly prohibits any individual from being elected president more than twice. The two-term limit became an established tradition after George Washington declined to seek a third term in 1797.

Despite the constitutional restriction, Trump’s statements have fueled speculation about his political future and potential efforts to challenge the rule.