Tesla Inc. shares soared over 17.6% on Wednesday after U.S. President Donald Trump announced a surprise 90-day pause on reciprocal tariffs for countries that have not retaliated against the United States. The electric vehicle giant’s stock traded at $260.56, up almost 18%, at 2:01 pm ET, amid a broad rally in U.S. equities.
The sharp move came after Trump, in a Truth Social post, stated:
“More than 75 countries have reached out to U.S. departments to negotiate on trade, tariffs, currency manipulation and non-monetary barriers… I have authorized a 90-day PAUSE and a substantially lowered Reciprocal Tariff during this period, of 10%, effective immediately.”
This announcement was made alongside a tariff escalation on China, where duties were hiked from 104% to 125%, further isolating retaliating nations from those that opted for negotiation.
Markets responded swiftly, with the Dow Jones jumping over 7% and the Nasdaq 100 rallying more than 8%, as investors bet on relief for global trade-exposed companies like Tesla. The pause offers a near-term boost for multinational firms with strong international linkages, and Tesla emerged as one of the biggest gainers of the day.
