China remains an exception after US President Donald Trump took two steps back from the fierce reciprocal tariffs he had announced on countries from around the world.

His announcement of a ‘90-day pause’ in tariffs for all except China came after US equities fell, the bond market shook, and financial volatility indicated worse to come.

Trump had announced huge and extensive reciprocal tariffs on all countries with his usual bluster. His manner showed the capacity to bully and attempt to shape global economics as his allies and adversaries worried about the consequences of his trade war on their economies.