Rand halts freefall after Trump pauses tariffs for 90 days, uncertainty looms

Trump last night gave all countries a 10% baseline except China, which will see even higher levies at 125%.

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SIPHELELE DLUDLA

THE rand recovered instantaneously on Wednesday night after suffering a near-record low earlier in the day after US President Donald Trump announced a 90-day pause on his sweeping tariffs, which hammered global markets and raised the odds of recession.

Trump on Wednesday gave all countries a 10% baseline except China, which will see even higher levies at 125%, saying that more than 20 countries had asked for negotiations over the hefty tariffs.

Based on the lack of respect that China has shown to the World’s Markets, I am hereby ordering them to IMMEDIATELY start the process of levying tariffs on the remaining 300 Billion Dollars of goods coming into the U.S. This is a threat and order to negotiate a deal!,” Trump said on Truth Social.

Conversely, and based on the fact that more than 75 countries have called Representatives of the United States ... to negotiate a solution to the respects being discussed, I have decided to give a 90 Day period of abstention, from Tariffs or increased Tariffs, for them to start,” Trump said.

The rand immediately surged by 2.05% to R18.91 against the US dollar at 7pm after the announcement, surging sharply from R19.80 mark it had traded at around 5pm as the US-China trade war worsened.

Since the announced substantial import tariffs by US President Donald Trump last week, described by critics as protectionism, the rand had plummeted more than 5% against the greenback.