Trump announces 90-day pause

It looks like Monday's 90-day pause headline wasn't entirely inaccurate, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Trump announces tariff pause, ramps up China tariffs again

President Trump’s announcement of a 90 day pause for all other countries save China has seen stocks leap higher on what might be called the biggest relief rally since Covid. It looks like the president has finally bowed to pressure, though in his inimitable style he is spinning it as a generous gesture to the world in response to others approaching Washington for negotiations. The size of the surge shows how desperate investors were for a deal, and gives hope that there is light at the end of the tunnel.”

There is of course, a sting in the tail. China faces higher tariffs in response as Trump continues to target his geopolitical rival. Whether this was part of a grand plan is to be debated, but it certainly looks like the US president has made some progress in reorienting the global trading system back towards the US and away from China.