U.S. President Donald Trump said he is pausing “reciprocal tariffs” for 90 days on countries that have not retaliated against the United States while increasing tariffs on China, sending stock markets sharply higher.

The S&P 500 jumped nearly 6 per cent after Mr. Trump made the announcement on his social media platform Truth Social, partly reversing the sharp sell-off in stock markets that followed his announcement of sweeping tariffs last Wednesday.

“Based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Mr. Trump wrote.

At the same time, the President said he would increase tariffs on China.

“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” he said.

“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”

More to come