At the same time, the US president said he would be raising duties on China to 125% citing Beijing's "lack of respect". That number was raised to an eye-watering 145% the next day when the White House clarified it hadn't accounted for a 20% fentanyl tariff.
By the end of the week, two biggest economies on the planet were in an all-out trade war, with China upping its retaliatory levies on incoming US goods to 125%.
Here are some highlights from the last seven days, plus a glimpse at the week ahead.
Key moments from last week
In the lead-up to the president's tariff pivot, markets were unraveling: Stocks slid sharply, with the S&P 500 on the brink of a bear market ·Spencer Platt via Getty Images
The UK’s productivity is near the bottom of the G7 wealthiest nations in the world, in stark contrast to the US, where it has accelerated since 2019, according to think tank the Resolution Foundation.
Based on official data, the Foundation estimates that economic output per hour worked has fallen in 13 sectors since 2019 accounting for nearly two-thirds of UK output.
Meanwhile the success of the 'Magnificent 7' tech behemoths and a continued oil and gas boom has propelled the US in the opposite direction.
In the lead-up to the president's tariff pivot, markets were unraveling: Stocks slid sharply, with the S&P 500 (^SPX) on the brink of a bear market. But the real alarm bell? A sharp, unexpected surge in long-term Treasury yields – a move that seemed to force the president’s hand.
"The bond market is very tricky. I was watching it," Trump admitted to reporters shortly after the announcement. "People were getting a little queasy."
Given the unpredictability of developments around tariffs, there is still a great deal of uncertainty hanging over markets.
"Markets have responded with dramatic swings, reflecting both relief at signs of pragmatism and concern over the potential for a deeper trade rift between the world’s two largest economies," said Ian Futcher, a financial planner at wealth management firm Quilter.
We looked at some of the strategies available for investors in such turbulent and unpredictable times.
From Wall Street to Tokyo, we charted the dramatic "liberation day" effect as trillions of dollars were wiped off the value of equities worldwide.
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Tuesday and Wednesday are the big days for UK economic releases, with unemployment and inflation data set to be published. The consensus is for no change in the 4.4% jobless rate, while inflation is seen ticking down very slightly.
Wednesday will see China release a slew of data including GDP growth, with analysts predicting a sharp fall in the annual rate from 5.4% to 5.1%.
The European Central Bank will make a decision on interest rates on Thursday afternoon, with forecasts pointing to a 25 basis-point reduction.
Across the Atlantic, retail sales and manufacturing data will be in the spotlight on Wednesday, followed by building permits and housing starts the following day.
The next earnings season is starting to ramp up in the coming week with a number of major companies due to report.
The semiconductor sector will be in focus, as chipmaker TSMC (2330.TW, TSM) and chip equipment producer ASML (ASML.AS) are slated to release results. And investors will be hoping for another bumper set of results from streaming giant Netflix (NFLX), when it reports on Thursday, after the success of releases such as Adolescence boosted viewer numbers in the first quarter.
In the UK, investors will be keeping an eye on the latest results from supermarket Sainsbury's (SBRY.L), after rival Tesco (TSCO.L) warned of intensifying competition in the space.
End note: Margin Call
The term “margin call” is enough to strike fear into the hearts of Wall Street traders. Essentially a demand from bank to borrower to stump up more money to cover a loan, they tend to occur when markets are in free fall. So it's no surprise that the dreaded phrase was in the air in recent days as stocks plunged in the wake of Donald Trump's tariff assault.
It's also the name of a well received, gritty 2011 drama charting the plight of an investment bank staring ruin in the face at the onset of the global financial crisis three years earlier.
The film was notable for its star-studded cast that included Demi Moore, Kevin Spacey, Paul Bettany and Stanley Tucci.
