Trump's "Tariff Stance" Takes a Dramatic Turn! Over 75 Countries Granted a 90-Day "Grace Period," the Reason Being...

As US President Trump wielded the "tariff stick" indiscriminately, US stocks previously fell into a "continuous decline" trend. Shortly after forcefully implementing "reciprocal tariffs," Trump surprisingly "reversed his stance" and announced that he had authorized a 90-day tariff suspension for countries that did not take retaliatory actions.

This stands in stark contrast to his previous vow to maintain historically high tariffs and is another example of the recent volatility in US tariff policy.

Trump explained that, given that over 75 countries had contacted US representative agencies to negotiate solutions on issues related to trade, trade barriers, tariffs, currency manipulation, and non-monetary tariffs, and that these countries, under his strong recommendation, had not retaliated against the US in any way or form, he had approved a 90-day suspension.

"During this period, the reciprocal tariffs on these countries will be significantly reduced to 10%, and the suspension measures will take effect immediately," he added. However, the White House declined to disclose which countries would be covered by the suspension measures or how long the negotiations with the 75 countries would take.

Market factors were also a significant driver behind this decision.

At the same time, Trump acknowledged that market factors influenced his decision.

When asked why he decided to suspend the tariffs, Trump replied, "I think people went a bit overboard. People became a bit impatient, a bit scared."

Trump also stated that he was particularly focused on the bond market, seemingly referring to the sharp decline in demand for US Treasuries and the sharp rise in yields recently.

For a long time, US Treasuries have been considered a safe haven during financial turmoil. However, after the new round of tariffs took effect and China announced new countermeasures, US Treasuries experienced a massive sell-off, with the 10-year Treasury yield briefly rising above 4.5% on Wednesday.

After the news of the tariff suspension was announced, the 10-year Treasury yield pulled back to 4.382% at the close, up 12 basis points, while the 2-year Treasury yield rose 4 basis points to 3.768%. The three major US stock indices surged at the close, with the Nasdaq up over 12%, marking the second-largest single-day gain in history.

"The bond market is very tricky, and I've been watching it. But if you look at it now, it's beautiful. I felt a bit sick last night. You have to be flexible to get things done," he said.

After Trump announced the news, US Treasury Secretary Scott Bessent also told reporters that the 90-day suspension was the result of countries hoping to negotiate agreements with the Trump administration to reduce tariffs.

"We have over 75 countries reaching out to us, and I think there will be more after today," he said.

Bessent also noted that each of the ongoing 75 negotiations was "tailor-made," and that Trump's tariff plan created "negotiating leverage."

However, he later added that separate tariffs on imported cars, steel, and aluminum would remain in place, and that planned tariffs on goods such as lumber and pharmaceuticals would also be retained.