Trump's Trade Tactics: A Rollercoaster for Global Markets

Donald Trump's unexpected decision to pause recent tariffs fueled global stock market rallies, impacting trade relations with nations, primarily China. Following financial turmoil, Trump adjusted his trade strategy, maintaining a hard stance on China while signaling potential negotiations with other countries, raising concerns over future market stability.

In a surprising move, U.S. President Donald Trump decided to halt the hefty tariffs he had recently imposed on numerous countries, causing a surge in battered international stock markets on Thursday. Despite escalating a trade war with China, the world's second-largest economy, Trump's announcement offered temporary relief to global markets.

The policy reversal followed severe financial market volatility, the most intense since early in the COVID-19 pandemic, wiping trillions from stock markets and triggering a surge in U.S. government bond yields. Trump's decision seemed influenced by this financial turbulence, leading to a 9.5% spike in the S&P 500 index and a boost in bond yields and the dollar.

Despite the temporary truce, Trump intensified pressure on China by raising tariffs on Chinese imports. While he expressed a willingness for diplomacy, securing a resolution with China remains uncertain. The markets remain wary, reflecting the unpredictable nature of ongoing trade tensions between these economic giants.

(With inputs from agencies.)