US STOCK MARKETS SOAR AFTER PRESIDENT TRUMP PAUSES TRADE PENALTIES FOR ALL NATIONS EXCEPT CHINA

DONALD Trump abruptly paused tariffs above 10% for 90 days yesterday on all countries except for China, which he raised to a staggering 125%.

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US markets surged in response, with the S&P 500 up 7.8% in afternoon trading.

The Dow Jones Industrial Average was up 2,476 points, or 6.6% and the Nasdaq composite was 9% higher.

Posting on his Truth Social site, Mr Trump said: "Based on the lack of respect that China has shown to the world's markets, I am hereby raising the tariff charged to China by the United States of America to 125%, effective immediately." The White House also announced a 10% reciprocal tariff rate for all other countries' imports to allow for talks. Press Secretary Karoline Leavitt said more than 75 countries had called Mr Trump to negotiate.

She confirmed: "There will be a 90-day pause in the reciprocal tariffs as these negotiations are ongoing and the tariff level will be brought down to a universal 10%." Mr Trump's change of heart came after Wall Street billionaire Bill Ackman, who supported his election campaign, advised a 90-day "call out" to make trade deals or face an "economic nuclear winter".