Global markets soared on Thursday after U.S. President Donald Trump announced a 90-day suspension of newly imposed tariffs on most countries  excluding China, which now faces elevated tariffs reaching 125%.

The move followed mounting pressure from financial markets and economic institutions warning of severe global slowdown. The announcement triggered a rally in global stock exchanges, with the Dow Jones jumping 7.9%, the Nasdaq rising 12.2%, and major Asian and European markets also posting strong gains.

In response, China imposed additional tariffs on U.S. imports, reigniting concerns over renewed trade friction between the world’s two largest economies.

Analysts view Trump’s decision as a possible opening toward broader diplomatic negotiations to end a prolonged trade war that has disrupted global supply chains and investor confidence.