Trump Announces 90-day Suspension of New Tariffs

US President Donald Trump announced a 90-day suspension of new tariffs after his trade war rocked the global economy.

At the same time, he announced that he had raised tariffs on China to 125%, escalating the tit-for-tat measures between the two sides.

Trump said he had "authorized a 90-day suspension and a significant reduction in the mutual tariffs during this period, by 10%, effective immediately."

In the same letter, Trump said he was raising US tariffs on China while working to bring Beijing to the negotiating table.

The US president wrote in his letter: "Based on China's disrespect for global markets, I am therefore raising the tariffs imposed by the United States of America on China to 125%, effective immediately. At some point, hopefully in the near future, China will realize that its days of ripping off the United States, and other countries, are no longer sustainable or acceptable."

Stocks rose sharply in response to the news, with the Dow Jones Industrial Average rising 2,200 points, or 5.9%, the S&P 500 rising 6.5%, and the Nasdaq Composite rising 8%.