United States President Donald Trump posted “THIS IS A GREAT TIME TO BUY!!! DJT” on Truth Social, with none of his team knowing what was coming. Later, he dropped a second post announcing that the United States would immediately raise its tariff on China to 125%. The post also said there would be a 90-day pause for all other countries, during which tariffs would be lowered to 10%.
In his post, he gave a long explanation about what had caused it, noting that China had failed to regard the global markets. He added that more than 75 countries had contacted U.S. agencies like the Commerce Department, Treasury, and U.S. Trade Representative about issues tied to trade, barriers, tariffs, currency, and non-monetary practices. He added that those countries had not hit the US back, noting that it is why he gave them a pause and a 10% rate that has gone into effect now.
Markets gain trillions after Trump’s double post
Within ten minutes of revealing the tariff plan, U.S. stocks added $4 trillion in value. The S&P 500 gained 6%, the Dow Jones rose 2,159 points(5.7%), and the Nasdaq rose 8%. This surge came after a four-day losing streak where the Dow dropped over 4,500 points, the S&P and the Nasdaq dropped 12% and 13% respectively.
Stocks of companies like Apple, Nvidia, and Walmart were heavily affected and led the rebound. They climbed 7%, 10%, and 9% respectively. Scott Bessent, who now leads the U.S. Treasury, spoke to reporters after Trump made his posts. He mentioned that he would take the lead in the trade negotiations. He also added that sector-specific tariffs remain unaffected, and targeted industries continue to face previous rates.