ASX 200: Australian stock market surges amid Trump tariffs ‘pause’ despite no change for Australia

Australian dollar recovers ground, rising to US61.5c after threatening to plunge below US59c earlier this week

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Donald Trump's decision to pause steep tariffs against most nations has ignited a share market rally set to erase most of the losses suffered over the past week, even as Australia grapples with how to navigate an escalating trade war between the world's two biggest economies.

Wall Street soared overnight after Trump unveiled a 90-day pause on tariffs above 10% on dozens of countries, with the notable exception of China.

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