On April 9, 2025, President Trump took a decisive step regarding international trade by announcing a 90-day pause on the steep global tariffs that were recently applied to nearly 60 countries. This announcement came just hours after those tariffs had gone into effect, causing significant market disturbances and growing concerns about a potential recession. The pause aims to stabilize the financial markets that were rattled by the initial tariff implementation, which had already incurred heavy losses.
Trump Announces 90-Day Pause on Global Tariffs Amid Market Turmoil
Trump Announces 90-Day Pause on Global Tariffs Amid Market Turmoil
In a surprising move, President Trump pauses global tariffs while increasing penalties on China, affecting trade dynamics.
However, Trump's approach to China remains aggressive; he has increased tariffs on Chinese exports to a staggering 125 percent, following China's retaliatory tariff hike which had reached 84 percent on American goods. In an unexpected twist, Trump declared on Truth Social that all trading partners would now be subject to a significantly lower reciprocal tariff of 10 percent, with the exception of China, which continues to face the steep 125 percent tax.
The announcement resulted in an immediate positive response in the financial markets, with the S&P 500 soaring about 7 percent shortly afterward, marking its most significant day since March 2020. Many sectors, especially airlines and technology, witnessed stock surges upwards of 20 percent. Despite the looming tariffs on imported vehicles, automakers such as Ford and General Motors also reported gains, reflecting a broader market recovery.
When referencing his decision to halt the tariffs, Trump indicated that market fears may have been overblown. He acknowledged the erratic trading activity that had shifted dynamics in the market, calling for a more stabilizing approach to trade policies during this tumultuous time.
The announcement resulted in an immediate positive response in the financial markets, with the S&P 500 soaring about 7 percent shortly afterward, marking its most significant day since March 2020. Many sectors, especially airlines and technology, witnessed stock surges upwards of 20 percent. Despite the looming tariffs on imported vehicles, automakers such as Ford and General Motors also reported gains, reflecting a broader market recovery.
When referencing his decision to halt the tariffs, Trump indicated that market fears may have been overblown. He acknowledged the erratic trading activity that had shifted dynamics in the market, calling for a more stabilizing approach to trade policies during this tumultuous time.
