Stock market soars after Trump freezes tariffs for 75 countries

CV NEWS FEED // The stock market soared Wednesday after President Donald Trump announced a 90-day freeze on tariff hikes for more than 75 countries.

The Dow Jones Industrial Average rose 7.9%, while the S&P 500 climbed 9.5% and the Nasdaq jumped 12.2% by midafternoon. According to Dow Jones Market Data, US-listed stocks gained $4.8 trillion in market cap, on track to set a record.

“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” Trump wrote on Truth Social Wednesday morning. “THIS IS A GREAT TIME TO BUY!!!” he added.

The tariff freeze applies to nations that have not “retaliated in any way, shape, or form,” following the implementation of Trump’s Liberation Day tariffs last week. Under the new terms, those countries will now face only a 10% baseline tariff rate. 

At the same time, Trump escalated tariffs on Chinese imports from 104% to 125%, citing China’s “lack of respect… to the World’s Markets.” Beijing swiftly retaliated by imposing an 84% tariff on all US imports, effective Thursday.  

Despite tensions, Trump remained confident: “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”

Key US allies have seen their tariff rates sharply reduced, with the European Union, Japan, and South Korea seeing reductions from 20%, 24%, and 25% to just 10%.

Treasury Secretary Scott Bessent hailed the decision as a shift toward revitalizing middle America.

“Wall Street has grown wealthier than ever before. And it can continue to grow and do well. But for the next four years, the Trump agenda is focused on Main Street. It’s Main Street’s turn,” Bessent said. “It’s Main Street’s turn to hire workers. It’s Main Street’s turn to drive investment. And it’s Main Street’s turn to restore the American Dream.”

Meanwhile, “Shark Tank” investor Kevin O’Leary backed the Trump administration’s stance, advocating for an additional 400% tariffs on China.

“As someone who actually does business there, I’ve had enough,” he said in a CNN interview Tuesday. “America is the No. 1 economy on Earth with all the cards. We will not have that forever… It’s time to squeeze Chinese heads into the wall now.”  

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