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Trump U-turns on tariffs but keeps trade war heat on China

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U.S. President Donald Trump’s stunning decision to pause the hefty duties he had just imposed on dozens of countries sent battered global stock markets surging on Thursday even as he ratcheted up a trade war with the world’s No. 2 economy China.

Trump’s turnabout on Wednesday, which came less than 24 hours after steep new tariffs kicked in on most trading partners, followed the most intense episode of financial market volatility since the early days of the COVID-19 pandemic, Reuters reported.

The upheaval erased trillions of dollars from stock markets and led to an unsettling surge in U.S. government bond yields that appeared to catch Trump’s attention.

“I thought that people were jumping a little bit out of line, they were getting yippy, you know,” Trump told reporters after the announcement, referring to jitters sportpeople sometimes get.

U.S. stock indexes shot higher on the news, with the benchmark S&P 500 index closing 9.5% higher. Bond yields came off earlier highs and the dollar rebounded against safe-haven currencies.

The relief spread through Asian markets as they opened on Thursday with Japan’s Nikkei index surging 8% while European futures also pointed to a sharp rebound. Even Chinese stocks rose, propped up by hopes of state support, although its yuan currency fell to the lowest level since the global financial crisis.

Since returning to the White House in January, Trump has repeatedly threatened an array of punitive measures on trading partners, only to revoke some of them at the last minute. The on-again, off-again approach has baffled world leaders and spooked business executives.

U.S. Treasury Secretary Scott Bessent asserted that the pullback had been the plan all along to bring countries to the bargaining table. Trump, though, later indicated that the near-panic in markets that had unfolded since his April 2 announcements had factored in to his thinking.

Despite insisting for days that his policies would never change, he told reporters on Wednesday: “You have to be flexible.”

But he kept the pressure on China, the second biggest provider of U.S. imports. Trump said he would raise the tariff on Chinese imports to 125% immediately from the 104% level that took effect at midnight.

Beijing on Wednesday slapped 84% tariffs on U.S. imports to match Trump’s earlier tariff salvo and has vowed to “fight to the end” in an escalating tit-for-tat trade dispute between the world’s top two economies.

Chinese companies that sell products on Amazon are preparing to hike prices for the U.S. or quit that market due to the “unprecedented blow” from the tariff hikes, the head of China’s largest e-commerce association said.

‘GOADED CHINA’

Trump’s reversal on the tariffs imposed on other countries is also not absolute. A 10% blanket duty on almost all U.S. imports will remain in effect, the White House said. The announcement also does not appear to affect duties on autos, steel and aluminum that are already in place.

The 90-day freeze also does not apply to duties paid by Canada and Mexico, because their goods are still subject to 25% fentanyl-related tariffs if they do not comply with the U.S.-Mexico-Canada trade agreement’s rules of origin. Those duties remain in place for the moment, with an indefinite exemption for USMCA-compliant goods.

Trump’s tariffs had sparked a days-long selloff that erased trillions of dollars from global stocks and pressured U.S. Treasury bonds and the dollar, which form the backbone of the global financial system. Canada and Japan said they would step in to provide stability if needed – a task usually performed by the United States during times of economic crisis.

Analysts said the sudden spike in share prices might not undo all of the damage. Surveys have found slowing business investment and household spending due to worries about the impact of the tariffs, and a Reuters/Ipsos survey found that three out of four Americans expect prices to increase in the months ahead.

Goldman Sachs cut its probability of a recession back to 45% after Trump’s move, down from 65%, saying the tariffs left in place were still likely to result in a 15% increase in the overall tariff rate.

Treasury Secretary Bessent shrugged off questions about market turmoil and said the abrupt reversal rewarded countries that had heeded Trump’s advice to refrain from retaliation. He suggested Trump had used the tariffs to create maximum negotiating leverage. “This was his strategy all along,” Bessent told reporters. “And you might even say that he goaded China into a bad position.”

Bessent is the point person in the country-by-country negotiations that could address foreign aid and military cooperation as well as economic matters. Trump has spoken with leaders of Japan and South Korea, and a delegation from Vietnam met with U.S. officials on Wednesday to discuss trade matters, the White House said.

Bessent declined to say how long negotiations with the more than 75 countries that have reached out might take.

Trump said a resolution with China was possible as well. But officials have said they will prioritize talks with other countries.

“China wants to make a deal,” Trump said. “They just don’t know how quite to go about it.”

Trump told reporters that he had been considering a pause for several days. On Monday, the White House denounced a report that the administration was considering such a move, calling it “fake news.”

Earlier on Wednesday, before the announcement, Trump tried to reassure investors, posting on his Truth Social account, “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”

Later, he added: “THIS IS A GREAT TIME TO BUY!!!”

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Americans don’t think Trump has explained Iran war goals, Reuters/Ipsos poll shows

The Reuters/Ipsos poll had a 3-percentage-point margin of error ​in either direction based on the number of people surveyed.

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Two out of three Americans think President Donald Trump has not clearly explained why the country went ‌to war with Iran, according to a Reuters/Ipsos poll completed on Monday that also showed his approval rating ticking up from the lowest level of his term.

The four-day poll revealed deep concerns about surging gasoline prices, and also suggested many voters are casting blame for their troubles on Trump’s Republican allies who will be defending their congressional majorities in ​the November midterm elections.

More than two months into a conflict that began February 28 with a U.S.-Israeli bombing campaign, some 66% of poll ​respondents – including one in three Republicans and almost all Democrats – said Trump has not “clearly explained the goals of U.S. ⁠military involvement in Iran.”

The war, which cooled in recent weeks as both sides floated peace proposals, has driven a roughly 50% increase in gasoline ​prices across the country. Iran shut down a fifth of the global oil trade by effectively closing the Strait of Hormuz – despite efforts by U.S. warships ​to re-open the waterway for oil tankers.

Some 63% of the country say their household’s personal financial situation has taken a hit from recent gas price increases, up from 55% in a Reuters/Ipsos poll conducted March 17-19.

Some 36% of Americans approve of Trump’s performance, up two percentage points since a late April Reuters/Ipsos poll showed ​his approval rating at 34%, which was the lowest level of Trump’s current term in office.

The Reuters/Ipsos poll had a 3-percentage-point margin of error ​in either direction based on the number of people surveyed.

Trump’s popularity remains below the 40% approval rate he had just before the war started. He started his term ‌in January ⁠2025 with 47% approval after winning the 2024 presidential election on promises to lower costs for Americans.

Three-quarters of the public – including half of Republicans – think his administration bears at least a fair amount of responsibility for the gas price surge, the latest Reuters/Ipsos poll showed. Asked which political party is more responsible, 65% of poll respondents said Republicans were to blame compared to 27% who said Democrats.

Four out of five Americans said they ​expect gas prices to rise further.

Republicans ​are defending narrow majorities in the ⁠U.S. House of Representatives and the Senate in the midterms. Their hopes of keeping control of the House have been bolstered by recent court rulings that could lead to voting district boundaries that are more favorable to ​Republicans. Republican strategists say the party’s chances would further improve if gasoline prices came down.

But with no agreement ​in sight between ⁠Washington and Tehran, about three in 10 Americans already expect to cut back on summer vacation plans if gas prices hold firm, the poll found. Many expect to cancel their trips or travel shorter distances.

Trump has repeatedly promised gas prices will fall when the war ends, though analysts warn that is unlikely to happen ⁠quickly. The public ​isn’t sure who has the upper hand in the conflict. Only one in three say ​America has the advantage, while about one in seven say Iran has it, the Reuters/Ipsos poll showed. The rest said they weren’t sure or that neither side has an advantage.

The latest ​Reuters/Ipsos poll was conducted online and gathered responses from 1,254 U.S. adults nationwide.

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Israel built and defended a secret base in Iraq for Iran war, WSJ reports

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Israel established a covert military installation in the Iraqi desert to support its air operations against Iran, according to a report by The Wall Street Journal, citing individuals familiar with the matter, including U.S. officials.

The report said the facility was used as a logistical hub for the Israeli Air Force and also housed special forces, as well as search-and-rescue units prepared to assist any downed pilots during operations.

According to the newspaper, the base was built with the knowledge of the United States shortly before the onset of what it described as a joint U.S.-Israeli military campaign against Iran.

The report added that Israeli forces conducted airstrikes against Iraqi troops on at least one occasion after they allegedly came close to discovering the site, in order to prevent exposure of the facility.

The existence of the installation reportedly came under threat in early March, when Iraqi state media said a shepherd had alerted authorities to unusual military activity in the area, including helicopter movements. Iraqi forces were subsequently dispatched to investigate.

The Wall Street Journal further reported that Iraqi troops were struck by Israeli air operations while approaching the area, based on accounts from sources familiar with the incident.

Later in March, Iraq submitted a complaint to the United Nations alleging that foreign forces were involved in attacks in the area and initially attributed responsibility to the United States. However, the report cited a source familiar with the matter as saying the U.S. was not involved.

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Trump releases government UFO files, more expected

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At the order of U.S. ​President Donald Trump, the Defense Department on Friday released dozens of previously classified files on alleged UFO sightings to provide what ‌it called “unprecedented transparency” to the American people, though analysts said many of the documents had already been made public.

The disclosure of documents, photos and videos of “unidentified anomalous phenomena” will be followed by future releases as more materials are declassified, the Defense Department said in a statement, Reuters reported.

Trump was the latest president to release U.S. government reports on UFOs, a ​disclosure process that began in the late 1970s. Experts said the batch of around 160 files released on Friday contained new videos ​of known sightings but gave no conclusive evidence of alien technology or extraterrestrial life.

The files include a 1947 report of “flying discs” as well as grainy photos of “unidentified phenomena” taken from the moon’s surface by the 1969 Apollo 12 lunar mission and a transcript of the ​Apollo 17 crew describing unidentified objects seen from the moon in 1972.

‘BRIGHT PARTICLES’ DURING APOLLO 17

Apollo 17 mission pilot Ronald Evans reported “a few very bright ​particles or fragments or something that go drifting by as we maneuver,” based on the transcript.

“Roger. Understand,” mission control replied.

“These files, hidden behind classifications, have long fueled justified speculation – and it’s time the American people see it for themselves,” Hegseth said in a statement.

The records release is likely to fuel fresh debate over government secrecy and ​the possible existence of life in the cosmos.

“Whereas previous Administrations have failed to be transparent on this subject, with these new Documents and Videos, ​the people can decide for themselves, “WHAT THE HELL IS GOING ON?” Trump said in a statement. “Have fun and enjoy!”

The move was welcomed by U.S. Representatives Tim Burchett and ‌Anna Paulina ⁠Luna, both proponents of declassifying UFO files. Luna said an additional tranche of material was expected in about 30 days.

“The files show that UAP are not simply a matter of speculation or public curiosity,” Harvard University astrophysicist Avi Loeb said in an email to Reuters. “The government has collected records.”

The images from Apollo 12 and 17 were fascinating but could be the result of asteroid impacts on the lunar surface, Loeb said.

DISTRACTION FROM POLITICAL PROBLEMS?

Some critics ​cast the UFO disclosures as a ​distraction from Trump’s political woes, including ⁠the unpopular U.S. military campaign against Iran and public pressure to release further files tied to convicted sex offender Jeffrey Epstein.

“I really don’t care about the UFO files. I just don’t. I’m so sick of the ‘look at the ​shiny object’ propaganda,” former Republican U.S. Representative Marjorie Taylor Greene wrote on X.

UAP investigator Mick West said the ​administration of former President ⁠Joe Biden disclosed much of the same information as Friday’s release.

“They’re evidence of us not being able to identify a small white dot that’s a long distance away,” the Sacramento, California-based analyst said of the new UAP videos and images.

Independent journalist Leslie Kean said the release showed there was still a lot ⁠of government ​information on UAP that should be disclosed. Kean co-authored a 2017 New York Times story ​on a secret Pentagon UAP program, which prompted Congress to push for declassification of UFO documents.

“I think we’ve already proven the existence of UAP, but that doesn’t mean we’ve proven they’re ​alien or extraterrestrial or that we know what they are,” said Kean.

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