Part 2/9:
On Wednesday, a major uptick in the S&P 500 followed an announcement that the Trump administration would pause the aggressive tariffs originally proposed. A switch to a 10% flat tariff rate was introduced for all but one nation, China, which faced an escalated tariff of 125%. This sudden pivot seems to have rekindled investor confidence, despite ongoing tensions.
Moreover, subsequent reports indicated that critical electronics, such as smartphones and computers—essential items that represent nearly 20% of US imports from China—would no longer be subject to these tariffs. This move came unexpectedly, raising questions about the administration's strategy amidst an escalating trade war narrative.