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Business & Economy

Business & Economy

The Big Story

Trump relieves GOP, markets with tariff reversal

President Trump’s decision to lift hefty tariffs on most U.S. trading partners with a 90-day pause, even while keeping in place a 125 percent tariff on China, is a significant reversal.

© AP

The Dow Jones Industrial Average, rocked since last Thursday by Trump’s tariff announcement, rose 2,962 points or 7.87 percent on Wednesday — a shot of relief at Trump’s pause heard around the country.

The Nasdaq closed with a gain of 12.1 percent and the S&P 500 index ended the day 9.5 percent higher

Though huge tariffs remain on China, one of the largest exporters to the United States, markets saw the pause on most of the tariffs on other countries as reason for hope after several cloudy days.

Trump acknowledged the markets played into his decision.

Asked why he decided to implement the pause, Trump replied, “I thought that people were jumping a little out line,” adding that people were getting “a little bit yippy, a little bit afraid.”

“The bond market is very tricky, I was watching it. But if you look at it now it’s beautiful,” Trump said. “I saw last night where people were getting a little queasy.”

Read more here from The Hill's Alex Gangitano and Sylvan Lane.

Welcome to The Hill’s Business & Economy newsletter, I'm Aris Folley — covering the intersection of Wall Street and Pennsylvania Avenue.

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Key business and economic news with implications this week and beyond:

Trump refocuses trade war to China

President Trump increased tariffs on China to 125 percent on Wednesday, focusing his trade war for the time being on the world’s two largest economies and seeking to rally other countries against China.