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President Trump announced on Wednesday that the reciprocal tariff hikes he promised to implement would be paused for a 90-day period for more than 75 countries. This of course is with the exception of China, whose goods will be taxed an astounding 125%! (IMPORTANT TO NOTE: Although the pause is in place, there will be a universal 10% tariff across the board for these countries.) Why? POTUS wrote on his social media that he came to this decision because the over 75 countries who he announced he wanted to tax extra, did not retaliate (a.k.a they played nice) so, he gave them a 3-month reprieve. China however, did retaliate with an 84% increased tariff. In return, President Trump announced China to pay 125%. A White House official has confirmed to CNBC that the total tariffs they will be responsible for paying will amount to 145% on a majority of goods. The Goal? President Trump’s plan in doing this, is again to encourage American shoppers to purchase products made in the United States, and for companies to build their products here on American soil. The Stock Market response: Immediately after the announcement Wednesday, stock prices rose across the board- “The Dow Jones Industrial Average surged 2,963 points, or 7.9%, to close at 40,608, while the broad-based S&P 500 climbed 474 points, or 9.5%, to 5,457. The tech heavy-Nasdaq composite index jumped 1,857 points, or 12.2%.” (Source: CBS News) Today, they’ve fallen again… Interesting to note: Today, two Democratic Senators, Adam Schiff (D-CA), and Ruben Gallego, (D-AZ) wrote a letter to White House Chief of Staff Susie Wiles and U.S. Trade Representative Jamieson Greer. The letter asks for answers on whether or not the family, friends or those close to President Trump were aware of the tariff announcements in private before they became public (essentially insinuating insider trading)… More on this investigation here RECAP: There is a 90-day reciprocal tariff pause on more than 75 countries. There is a universal 10% tariff for those countries’ imports. The majority of China’s goods will be taxed 145% (even more on certain materials). Senator Adam Schiff (D-CA) is calling on Congress to investigate whether President Trump participated in insider trading or market manipulation. The stock market historically rose Wednesday, but has fallen again today.
What do you think? See you tomorrow! Wage peace, Xx, Marly
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