Posted on 04/09/2025 4:20:47 PM PDT by E. Pluribus Unum
WASHINGTON — President Trump walked back plans on Wednesday for a global trade war that sparked fears of economic panic and recession, a dramatic reversal after a week of market turmoil that led to a historic surge of relief on Wall Street.
But the president further escalated his standoff with China over tariffs, raising duties on America’s third-largest trading partner to 125%. Trump’s tariff on foreign automobiles, set at 25%, remains in place.
Markets responded to Trump’s reversal with an exuberant surge, a turn of fortunes after news of the president’s policies last week wiped out $7 trillion in value over just three days of trading. Overnight, a U.S. bond market selloff added to concerns over a spiraling economic crisis.
Minutes after Trump changed course, the Dow Jones industrial average rose over 2,900 points. The Nasdaq was up 12% at the closing bell. And the Standard & Poor’s 500 increased over 9.5% — its largest gain since the 2008 financial crisis, but still down over 11% from its February highs.
The turnabout provided temporary relief from a policy that experts warned could upend the global economy, sending prices in the United States up across the board and risking global recession.
Trump administration officials initially explained the policy switch as part of an organized plan: “This was his strategy all along,” Treasury Secretary Scott Bessent said. Yet, within the hour, Trump himself acknowledged that dire market blowback from his announcement last week forced him to back down.
The initial policy plan had...
(Excerpt) Read more at latimes.com ...
Who knew?
Too many bungee jumpers on Wall Street these days. They want the old status quo America back where money is taken away from workers families and thrown around by the politicians to anybody who wants it.
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