Trump Temporarily Suspends Reciprocal Tariffs, Except for China

President Donald Trump announced a temporary suspension of all "reciprocal" tariffs, with the exception of China. Tariffs on China will increase to 125% from 104%, he said.

"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," Trump wrote in a social media post. "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."

Stocks surged on the news, with the Dow rising 2,200 points (5.9%), the S&P 500 increasing by 6.5%, and the Nasdaq more than 8% higher.

The suspension does not apply to a 10% universal tariff on all trading partners, excluding Canada and Mexico, which went into effect over the weekend. As a result, countries subject to reciprocal tariffs will continue to face a 10% tariff.