Dow Surges 2,000 Points After Surprise Tariff Pause Announcement by Trump

President Donald Trump stunned global markets on Wednesday by announcing a massive 125% tariff on Chinese imports, while simultaneously putting a 90-day pause on new reciprocal tariffs for roughly 60 other countries. The move triggered a 2,000-point rally in the Dow Jones Industrial Average, reversing days of steep losses on Wall Street. Trump cited China’s “lack of respect for world markets” for the hefty hike, but said he’s hitting pause on tariffs elsewhere because more than 75 nations are now reaching out to strike new deals.

Treasury Secretary Scott Bessent called the pause “negotiating leverage,” noting that countries like Vietnam, India, and Japan had made “bespoke” overtures to avoid trade battles. Commerce Secretary Howard Lutnick praised the strategy as a sign that many U.S. partners want to “fix global trade,” while China is “escalating the problem.” By taking a softer line on most trading partners, the White House hopes to concentrate its efforts on China—said to be the biggest source of America’s trade imbalance.

Even those who urged a temporary tariff freeze, like billionaire Bill Ackman, applauded Trump’s abrupt policy shift. “Textbook, Art of the Deal,” Ackman wrote online, referencing Trump’s famed negotiation style. Yet, questions remain about how long the market euphoria will last. Some analysts warn the White House may still face complex talks to solidify permanent agreements—a process that could reignite volatility if breakthroughs don’t come quickly.