American actions made an arrow after US President Donald Trump said he suspended higher prices on the goods of most countries, and would impose an import tax rate of 10%instead.
The White House said that it was withdrawn from higher levies for business partners who had agreed to negotiate, although Trump said that he would still increase prices on the goods in China, at least 125% “immediately”.
The S&P 500 has climbed 7% in the afternoon trade and has been on the right track for one of its best days for years, after the days of market disorders in the midst of the disastrous warnings of an economic recession triggered by the trade war.
Trump’s decision comes less than 24 hours after the prices he announced earlier this month came into force, hitting goods from key business partners, such as Vietnam, which saw its imports faced with a new 46%border levy.
In the middle of the afternoon, the DOW also climbed more than 6.7% and the NASDAQ jumped more than 10%.
“Although President Donald Trump was able to resist stock market sale, once the bond market also started to weaken, it was only a matter of time before folding up his high prices on his eyes,” said Paul Ashworth, chief economist in North America for the capital economy.
He said he expected Trump to come back to a universal price of 10% he called in his campaign, although he warned that he was probably taking more time in the United States and China to conclude an agreement.
“It is difficult to see the two parties go back in the coming days,” he said. “But we suspect that the talks will eventually occur, although a complete decline in all the additional prices applied since the day of the inauguration seems improbable.”
