Following a remarkable week of tariff trauma, on Wednesday President Trump took to social media to announce a 90-day pause on most of the tariffs announced last week and a substantial lowering of Reciprocal Tariffs, to be agreed during this period.

The White House confirmed a 10% rate on most countries will be maintained, including those in the EU, plus higher 25% taxes on steel, aluminum and cars.

The dramatic U-turn in policy was followed by Trump saying that there will be “fair deals for everybody,” adding “you have to have flexibility.”

Despite a lack of clarity over what will happen next and in 90 days’ time, markets were buoyed by the news. Trade tariffs for China were increased to a rate of 125%, after they retaliated with elevated import tariffs. Canada and Mexico still face the tariffs imposed in March.

Following the announcement of the pause, a Downing Street spokesperson said the UK will “cooly and calmly” continue negotiations with the US.

Markets reacted positively, following days of economic turmoil. At close the S&P 500, Dow Jones and tech-orientated Nasdaq bounced back 9.5%, 7.8% and 12.1% respectively. The FTSE 100 soared by more than 6% at opening on Thursday morning.