The EU has just announced it’s pausing retaliatory tariffs on the U.S., one day after Trump abruptly lowered his so-called reciprocal tariffs on most countries for 90 days — just hours after they took effect Wednesday. Most U.S. trading partners will now see a blanket 10% tariff in addition to the previously imposed 25% tariffs on cars, steel and aluminum. But China was not spared in Trump’s sudden U-turn. Beijing now faces a hiked-up total tariff of 125% in retaliation for Beijing enacting an 84% levy on U.S. goods Wednesday. Markets rallied following the announcement after days in freefall. Trump told reporters he made the decision to halt the tariffs yesterday morning because people were “getting a little bit yippy,” but Treasury Secretary Scott Bessent claimed the move was part of Trump’s larger plan to create “maximum negotiating leverage.”

Treasury Secretary Scott Bessent: “It took great courage — great courage — for him to stay the course until this moment. And what we have ended up with here, as I told everyone a week ago in this very spot, 'Do not retaliate, and you will be rewarded.'”

Earlier on Wednesday, House Republicans deployed a rare procedural maneuver to block a Democratic measure that sought to force a vote on repealing Trump’s tariffs by challenging his national emergency powers. We’ll have the latest on Trump’s tariffs after headlines with guests Joseph Stiglitz and Nancy Qian.