US shares have rocketed after US President Donald Trump said he would suspend steep tariffs on goods from most countries and instead impose a 10% import tax rate.
The White House said it was backing off on higher levies for trade partners that had agreed to negotiate, although Trump said he would raise tariffs on goods from China even further, to at least 125% “effective immediately”.
The S&P 500 soared 9.5% in the biggest one-day rally since 2008, following days of turmoil sparked by the tariffs.
Trump’s decision came less than 24 hours after the latest round of tariffs had come into force, hitting key trade partners, such as Vietnam, which saw its imports facing a new levy of 46%.
The duties, which the president had announced last week, were higher and more far-reaching than many on Wall Street had anticipated.
In the aftermath of the announcement, the S&P plunged more than 10% and many analysts warned of the rising risk of economic recession in the US and globally.
By Wednesday, the fears had hit the bond market, where investors started dumping US government debt.
