Wall Street’s shares on Wednesday suddenly rose after US President Donald Trump announced a 90 -day tariff ban on all countries except China. After Trump’s announcement, Dow jumped 2,963 points or 7.87%. The S&P 500 jumped 9.52%. Technology-oriented Nasdaq rose by about 10%. Walmart’s shares increased by 8%.
After Trump’s announcement, investors shopped fiercely in shares and the market jumped. Nevertheless, uncertainty remains because Trump has further increased the tariff rates from 104% to 125%, furthering the trade war with China. The S&P 500 had reached the verge of recession, which had reached close to 20% from its all -time highest level seven weeks ago on February 19. Wall Street breathed a sigh of relief due to the bounce in the markets, but the investors still have no relief.
125 percent tariff on China
The tariff war between the US and China does not seem to stop. The US announced a 104 percent tariff on China. After which China also announced to increase the tariff by 85 percent. A few hours after this announcement of China, US President Donald Trump has announced to increase the tariff on Chinese goods from 104 percent to 125 percent.
Donald Trump has also announced a discount of 90 days tariffs for more than 75 countries of the world. Trump said that these countries have started negotiations on issues such as trade and currency manipulation from the US Department of Commerce, Treasury and USTR. A recipe of only 10 percent will be imposed on business with these countries for the next 90 days.