Tesla shares jumped nearly 23% on Wednesday after U.S. President Donald Trump paused new import tariffs for 90 days. The stock closed up $50.34 per share at $272.20 and rose another 0.92% in after-hours trading.
Earlier in the day, Trump announced that most countries would face a reduced tariff rate of 10% while trade talks continue. The move came just hours after nearly 90 countries were hit with higher import tariffs under a new “reciprocal” policy.
However, Trump said tariffs on Chinese imports would increase to 125% immediately. He cited what he called a “lack of respect” from China toward global markets. China responded by raising its own tariffs on U.S. goods to 84%.
The tariff pause appeared to calm markets. The S&P 500 index climbed 7%, its biggest one-day gain in five years, reversing recent losses.
When asked why he made the change, Trump said, “People were getting a little bit afraid. They were getting yippy.”
Trump claimed that more than 75 countries reached out to U.S. officials after he introduced the tariffs last week.
Year to date, Tesla shares are still down 28%, but for the past year are up 54%.
