In a Surprise Move, Trump Announces Major Tariff Rollback on Chinese Imports, Reaffirms Support for Jerome Powell

In a sudden announcement that caught investors and analysts off guard, former President Donald Trump declared that the 145% tariffs on Chinese imports “will be significantly reduced” and stated that he has “no plans to remove Jerome Powell” as Federal Reserve Chair. The statement, which came amid weeks of financial market volatility, sparked a wave of excitement and a historic surge in stock prices.

Details of the Announcement

Following a sharp drop in the S&P 500 and Nasdaq earlier in the week, Trump told CNN in a White House interview that the heavy tariffs on Chinese goods “will be reduced swiftly and substantially” (CNN).
He also emphasized that he has no intention of removing Jerome Powell before the end of his term in May 2026 (Axios).

Following Trump’s remarks, the S&P 500 jumped more than 3%, closing the day with a 1.5% gain (Business Insider).

Market Reaction

U.S. stock futures had been down by about 0.7% before the main trading session began. However, with the news of Trump’s tariff retreat, markets rebounded significantly (Reuters).
The U.S. dollar, after hitting its lowest point in three and a half years, strengthened slightly, while gold prices dropped over 3% (Reuters).

Despite the temporary boost, analysts warned that this rally may merely be a “dead cat bounce” and that structural risks remain (Reuters).

Political Implications

A recent poll showed that only 37% of Americans support Trump’s economic policies, marking the lowest approval rating in recent months (Politico/Reuters).
Critics within the Republican Party described the rollback as a sign of instability and an overreaction to market fluctuations (The Guardian).