Trump Tariffs: Wall Street's tech stocks took a sigh of relief as Trump imposed a 90-day pause on his tariff play on certain countries. Major tech stocks, including Meta, Apple and Nvidia, witnessed a surge in share price. The POTUS has simultaneously announced a staggering tariff rate on the Dragon, taking the overall duty to 125% on Chinese imports.
Following the announcement of the tariff pause, US markets not only rebounded but posted strong gains. Tech-heavy index, Nasdaq concluded the trading session at 17,124 level mark, up by 12.16% or over 1,800 points. Shares of Apple, which had previously dropped over 22% in just 5 trading sessions rebounded and surged by more than 15% yesterday. Meta shares took a similar trajectory and surged by more than 14.7%. Wall Street's darling and AI king, Nvidia concluded the trading session at $114.3 price level, up by over 18.7% in a single day.
Other US market indices, including Dow Jones Industrial Average and S&P 500 also logged significant gains yesterday. The 90-days-tariff pause will allow nations to plan on supply chains and negotiate via trade agreements. Markets in the Asia Pacific region followed the cue with Japan's Nikkei and South Korea's Kospi surging over 8.39% and 5.44%, respectively. However, Hang Seng index remained range-bound as tit-for-tat tariff play between China and the US kept investor sentiment jittery.
Tit-for-Tat
After China's warning to the US to roll back the tariff rate on the country, the Dragon imposed a straight 34% tariff rate on US imports. To make the trade spat worse, Trump raised the tariff rate to 104%. China again retaliated. Now, the US President has imposed a staggering 125% tariff rate on Chinese imports. This tariff spat between the US and China has escalated the concerns over trade wars, globally.
"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 said in a social media post.
"At some point, hopefully in the near future, China will realize that the days of ripping off the USA, and other Countries, is no longer sustainable or acceptable," the social media post further read.
