Trump's Tariff Tumult: A Rollercoaster for Global Markets

President Donald Trump temporarily lowered tariffs on dozens of countries, initially causing market volatility. His back-and-forth policies, especially targeting China, have created uncertainty. Although some tariffs remain, a 10% duty persists, with significant implications for US-China relations and global markets that spiked following the announcement.

In an unexpected turn, U.S. President Donald Trump announced a temporary reduction in the tariffs he had just imposed on numerous countries, which sent global stock markets soaring. This decision, made just 24 hours after the tariffs took effect, followed significant market volatility not seen since the initial COVID-19 pandemic shocks.

Trump's latest maneuver highlights the uncertainty around his trade policies. Despite his insistence on firmness, he allowed flexibility, especially regarding China. The tariffs on Chinese imports are set to rise, intensifying the economic standoff between the two largest global economies. Treasury Secretary Scott Bessent stated the strategy was to draw countries to negotiate.

The tariffs have caused market upheaval, erasing trillions from stocks, affecting U.S. bonds, and impacting investments. Countries like Canada and Japan stand ready to provide stability. While markets rallied on the news, analysts are cautious, recognizing the persistent risks and potential for further economic disruption.

(With inputs from agencies.)