On April 9, 2025, President Trump announced a surprising suspension of tariffs on various countries for a period of 90 days while escalating tariffs on China, fueling a volatile trade war that continues to unfold.
Trump's Unexpected Tariff Pause Signals Market Rally
Trump's Unexpected Tariff Pause Signals Market Rally
U.S. stocks surged as President Trump calls for a 90-day tariff pause, yet China remains targeted in trade tensions.
In a surprising turn of events, U.S. stock markets experienced significant gains following President Trump's announcement that he would temporarily pause reciprocal tariffs on many nations for a duration of 90 days. However, amidst this cautious optimism, he declared that tariffs imposed on Chinese exports would increase to a staggering 125 percent. This announcement came after China retaliated with an 84 percent levy on American goods, marking an intensifying trade war between the two economic giants, both of which are now navigating turbulent waters with no resolution in sight.
According to White House officials, the default tariff rate would be reduced to 10 percent; however, this would not apply to the U.S.'s close trading partners, Canada and Mexico. This abrupt change followed the approval of the European Union's first retaliatory measures and an ongoing sell-off in U.S. bonds, typically regarded as safe investments, compounded by losses experienced across global markets.
When questioned about his reasoning for the tariffs pause, Trump remarked, "I thought that people were jumping a little bit out of line. They were getting yippy. They were getting a little bit afraid." He further emphasized that "nothing is over yet," expressing confidence in the U.S.'s trade spirit and mentioning that there are "many more than 75" countries interested in forging trade agreements. The Treasury Secretary added that this reversal was part of the President’s broader strategic vision all along.
According to White House officials, the default tariff rate would be reduced to 10 percent; however, this would not apply to the U.S.'s close trading partners, Canada and Mexico. This abrupt change followed the approval of the European Union's first retaliatory measures and an ongoing sell-off in U.S. bonds, typically regarded as safe investments, compounded by losses experienced across global markets.
When questioned about his reasoning for the tariffs pause, Trump remarked, "I thought that people were jumping a little bit out of line. They were getting yippy. They were getting a little bit afraid." He further emphasized that "nothing is over yet," expressing confidence in the U.S.'s trade spirit and mentioning that there are "many more than 75" countries interested in forging trade agreements. The Treasury Secretary added that this reversal was part of the President’s broader strategic vision all along.
