Trump Announces 90-Day Tariff Pause Amid Market Turmoil

In a surprising turn of events, President Trump declared on April 9, 2025, that he would put a 90-day hold on global tariffs affecting nearly 60 nations, merely hours after their implementation amid growing economic concerns. Despite this pause for others, he doubled down on punitive measures against China, raising tariffs on Chinese imports to an unprecedented 125 percent. The escalation stumbled upon an already tense trade landscape as Beijing retaliated with higher tariffs of 84 percent on American goods, igniting a growing trade war.

The president justified the halt on global tariffs as a response to significant turmoil in the financial markets, suggesting that investors were displaying undue panic. Following his announcement, markets like the S&P 500 experienced a remarkable turnaround, spiking approximately 7 percent—marking a significant recovery for investors after days of substantial losses. Stocks across various sectors, including airlines and tech, experienced dramatic climbs. Trump appeared to acknowledge the fragile state of market sentiments, attributing his sudden reversal to prevent further economic destabilization recognized by the tremors felt by the marketplace.