Wall Street went wild Wednesday after President Donald Trump announced a surprise 90-day delay on his sweeping tariff hikes—at least for countries that haven’t hit back with their own trade penalties.

The Dow soared over 2,000 points, up 6% in a single day. Traders jumped in as tech stocks skyrocketed and investors cheered a pause in what many feared could become a full-blown global trade war.

Trump Turns Up the Heat on China

But while Trump gave much of the world a temporary break, he cranked up pressure on China. The president raised tariffs on Chinese imports to 125%, effective immediately.

Trump justified the aggressive move by accusing China of showing “a lack of respect for the World’s Markets.” He made the announcement through a series of posts on his Truth Social platform.

“Based on the lack of respect that China has shown,” he wrote, “I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately.”

The hardline move signals that Trump isn’t backing down from his trade war—even if he’s easing up on others.

75 Countries Beg to Negotiate

Trump said over 75 countries had reached out to the U.S. to negotiate, asking for exemptions and softer treatment.

“These Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States,” Trump wrote. “I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”

The message was clear—if countries play nice, they get a break. If they fight back, they get the full weight of American trade penalties.

Markets Roar on Delay News

As soon as Trump’s tariff pause hit the wires, the stock market took off.

The S&P 500 jumped 7.3%, the biggest single-day spike since April 2020. The Nasdaq 100 soared 9% as investors raced to buy up battered tech stocks.

Nvidia jumped 12%, while Apple surged 13%—its biggest one-day move since March 2020.

“This is the kind of spark traders have been waiting for,” said Wall Street analyst Mark Anders. “Tariff pressure has been crushing market sentiment. A 90-day pause opens the door for relief rallies.”

Tariffs Still Loom After Pause

Still, experts warn the pause is temporary. Unless countries reach deals with the U.S., the full tariff load could return with a vengeance in July.

“The president is using the pause as leverage,” said trade lawyer Lisa Carver. “It’s an opening for diplomacy—but also a warning. The tariffs could come back even higher if countries don’t agree to new terms.”

The uncertainty means businesses are holding their breath. Many fear a return to tariff chaos just as the economy is trying to recover from months of inflation and weak growth.

U.S. Consumers Still Face Rising Prices

Even with the pause, American consumers are still feeling the pinch. Tariffs that remain in place—especially on Chinese goods—are driving up prices for everything from clothing to electronics.

Retailers have warned that holiday shopping could be more expensive this year. iPhones, in particular, may jump hundreds of dollars if the full China tariff sticks.

And while Trump delayed broader tariffs, he didn’t touch those already slapped on Canadian lumber, European wine, or Asian steel.

“This is good news for now,” said economist Brian Stein. “But the pain isn’t over. The China tariffs alone will raise costs for millions of households.”

A Strategic Gamble Before the Election

Trump’s move comes as he gears up for the 2024 election season, where the economy will be front and center.

Polls have shown voters are worried about rising costs and economic uncertainty. By pausing some tariffs, Trump may hope to ease pressure on consumers—without looking weak on China.

“It’s a smart political play,” said strategist Karen Leeds. “He gets to say he’s tough on Beijing while offering relief to U.S. allies and voters.”

Trump’s team hopes the rally on Wall Street boosts consumer confidence and strengthens the president’s argument that he can lead on the economy.

The Battle With China Escalates

Still, China isn’t taking Trump’s new tariffs lying down. Beijing quickly announced a retaliatory 84% tariff on U.S. goods, effective Thursday.

The move raises the stakes in what is already the most intense trade standoff between the world’s two biggest economies.

With China accounting for a major chunk of global supply chains, any extended fight could send ripple effects across industries—from auto manufacturing to tech hardware.

“Trump’s 125% tariff on China is a nuclear option,” said international trade expert Daniel Huang. “It risks breaking the global supply chain in ways we haven’t seen before.”

What’s Next for Wall Street?

Despite the wild rally, many investors remain cautious.

The 90-day pause gives room to breathe—but not enough to relax. Analysts say the next move depends on whether the U.S. can actually strike new deals with its trading partners.

“There’s optimism now, but it’s fragile,” said investment strategist Jen Locke. “If negotiations stall, we could see markets tumble again just as fast.”

Meanwhile, traders are keeping one eye on Trump’s next post and the other on earnings reports. With tariffs still looming, companies may begin issuing warnings about shrinking margins.

Tariffs Are Here to Stay—For Now

One thing is clear: Trump’s tariff strategy isn’t going away. He’s made tariffs a central piece of his economic vision, despite warnings from economists and business leaders.

For now, the 90-day pause may be the only lifeline many companies get.

“Tariffs hurt business, period,” said a retail CEO who asked not to be named. “But we’ll take what we can get.”

The world now waits to see what happens next—on Wall Street, in Beijing, and inside the White House.