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

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.

- SIPHELELE DLUDLA

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

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

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

Based on the lack of respect that China has shown to the world’s Markets, I am therefore moving immediately to increase tariffs on China to the United States of America to 125%, effective immediately’ Trumo 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 aspects being discussed, I have authorized a 90 day pause, and a substantially lowered reciprocal tariff during this period, of 10% to also affect the announcement.

The rand immediately surged by 2.05% to R18.90 against the US dollar at 7pm after the announcement, sharply from R19.80-mark it had traded at around 5pm as the US-China trade war worsened.

Since he announced substantial import tariffs last week, clasified as Section 301, a trade law, critics said the president’s action threatened more than 5% against the green-back.