Payam Javan: U.S. stock markets surged on Wednesday following President Donald Trump’s announcement that he would pause most reciprocal tariffs for 90 days, except those targeting China. The S&P 500 jumped 9.5%, the Nasdaq soared 12.1%, and the Dow Jones climbed nearly 3,000 points. Trump framed the pause as a chance for U.S. officials to negotiate fairer trade terms with other countries, while maintaining higher tariffs against China. He cited volatility in the bond market and recent remarks by JPMorgan Chase CEO Jamie Dimon as key influences behind his decision.

Despite the partial reversal, tariffs on China were increased from 104% to 125%, while China retaliated with an 84% duty on U.S. goods. The European Union also approved retaliatory measures. White House officials noted that a 10% baseline tariff remains for nearly all countries except China. Treasury Secretary Scott Bessent called the move a strategic ploy to gain maximum leverage, portraying China as the global aggressor in the trade dispute. Trump emphasized that tariffs remain a core part of his 2024 campaign strategy.