On Wednesday, a week after imposing sweeping reciprocal tariffs, President Trump announced a 90-day pause for dozens of countries, and a raise to 125% on levies to China. Last week’s “Liberation Day” announcement revealed a 10% global base tariff on all countries, including uninhabited territories, in addition to reciprocal tariffs for countries such as China, India, and Vietnam. Stock markets across the globe plunged for several days, and Wall Street banks increased recession odds, including JPMorgan raising its estimate to a 60% chance. Trump’s decision to increase levies on China comes after the second-largest economy responded with an 84% tariff on U.S. goods. Citing that more than 75 countries are engaging in trade negotiations with the U.S., Trump announced via social media that in addition to the pause on tariffs, there will be a reduced reciprocal tariff of 10% during the pause period. At the time of publishing, U.S. markets reacted positively, with Dow Jones, NASDAQ, and S&P 500 increasing by 5.5%, 7.08%, and 5.7% respectively.