Stocks surge after Trump backs down from new tariffs

The stock market surged Wednesday afternoon after President Trump announced he was pausing steep new import taxes on dozens of nations less than a day after they went into effect.

The Dow Jones Industrial Average, S&P 500 index and Nasdaq composite all skyrocketed after Trump said he would reduce and delay his previously announced tariffs on nearly all foreign goods by 90 days. The president, however, also announced he would increase the tax rate on Chinese imports to a staggering 125 percent.

“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,” Trump said on Truth Social.

The Dow closed with a gain of 2,962 points, rising 7.9 percent on the day. The Nasdaq closed with a gain of 12.1 percent and the S&P 500 index ended the day 9.5 percent higher.

The reversals of Trump’s trade plans and the market meltdown came hours after the president urged Americans to “BE COOL” and buy stocks, even as he refused to back down from tariffs.

“Did the Panicans listen to @POTUS’s advice this morning?,” posted the Trump campaign on X with a screenshot of the president’s call to buy stocks as the market soared higher.

The president admitted later in the day that he pared back his tariff plans after watching turmoil in the bond market and a stark warning from JPMorgan Chase CEO Jamie Dimon on TV.

“I thought that people were jumping a little out line,” Trump said Wednesday afternoon at the White House, adding that people were getting “a little bit yippy, a little bit afraid.”

The president cited an interview of Dimon conducted by Fox Business Network’s Maria Bartiromo, in which the banker predicted a recession if Trump didn’t change course.

“He was really good,” Trump said of Dimon.

Updated at 4:05 p.m. EDT.