US shares have rocketed after US President Donald Trump said he would suspend higher tariffs on goods from most countries, and instead impose a 10% import tax rate.
The White House said it was backing off on steeper 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 7% in afternoon trading and was on course for one of its best days in decades, after days of market turmoil amid dire warnings of an economic recession sparked by the trade war.
Trump’s decision comes less than 24 hours after tariffs he announced earlier this month came into force, hitting goods from key trade partners, such as Vietnam, which saw its imports facing a new levy at the border of 46%.