U.S. President Donald Trump has declared a 90-day suspension of the tariffs that were imposed last week, while simultaneously announcing a significant increase in duties on Chinese products.
According to his statement, the tariffs on Chinese imports have now been raised to 125% and are set to be implemented immediately.
Read more: Trump Imposes 104% Tariffs on China, Igniting Major Trade Conflict
Trump also confirmed that the recently introduced retaliatory tariffs will be temporarily halted for a period of 90 days, with the pause taking effect right away.
Following the announcement, U.S. financial markets reacted positively. The Dow Jones soared by 2,000 points, and the Nasdaq experienced an 8% jump.
In response to these developments, global crude oil prices rose by 2%, and gold prices increased by 3%.
Meanwhile, China had earlier responded with a fresh round of tariffs on U.S. goods, reaching up to 84%, which will be enforced starting Thursday.
China’s Ministry of Finance noted in a statement that this is an escalation of the 34% tariffs already in place on American imports.
