Trump’s Shocking Tariff Pause Rocks Global Markets
Trump Announces 90-Day Tariff Pause – In a move that stunned Wall Street and the global community, Donald Trump has paused targeted tariffs for 90 days—but with a twist. While most countries get a temporary breather, China’s tariffs have surged to a jaw-dropping 125%, effective immediately.
The abrupt policy shift, announced via Trump’s Truth Social post around 1:30 p.m., follows a week of economic chaos and collapsing stock markets. Trump cited a “lack of retaliation” from over 75 countries and their willingness to negotiate as the reason behind this tariff pause. However, for China—who hit back with 84% retaliatory tariffs—Trump said the gloves are off.
“I did a 90-day pause for the people that didn’t retaliate,” Trump said. “…That’s what I did with China, because they did retaliate.”
Stock Market Skyrockets After Trump’s 90-Day Tariff Pause
Markets instantly reacted to the announcement. The S&P 500 surged over 9%, Nasdaq jumped more than 12%, and the Dow Jones Industrial Average closed nearly 3,000 points higher. This came after days of hemorrhaging value, with a $6.6 trillion wipeout last week alone.
Among the biggest winners? Tesla stock soared 22%. Even DJT, the stock linked to Trump’s Truth Social platform, climbed sharply, spurring speculation around market manipulation and Trump insider trading rumors once again.
Trump’s 104% China Tariff Sends Shockwaves Through Global Markets
Still, not everyone was celebrating. Renowned investor Bill Gross voiced concern over the extreme volatility, questioning the long-term sustainability of U.S. markets influenced by impulsive executive decisions.
“Would you want to own highly volatile US stocks whose price depends on whether POTUS had a good night’s sleep?” Gross posted on X.
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What the 90-Day Pause Really Means
The 90-day pause on tariffs applies to dozens of nations—but the White House won’t clarify which ones. While Canada and Mexico are largely protected by the USMCA, products outside of that agreement face a 25% tariff. Canadian energy and fertilizers get a 10% levy.
Key points:
- China gets hit with 125% tariffs
- U.S. keeps a 10% across-the-board tariff in place
- Auto, steel, aluminum, lumber, and pharmaceuticals still face existing or planned duties
- The EU’s retaliatory tariffs are still coming—just not until next week
So, did Trump pause tariffs? Yes—but not across the board. This isn’t a rollback; it’s a strategic pause…with heavy strings attached.
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Why Did Trump Pause Tariffs?
The move seems partly fueled by political and financial backlash. Stocks plummeted in recent days, public pressure mounted (including criticism from Elon Musk), and a false rumor of a 90-day pause already caused a market spike earlier in the week.
Rather than reverse course quietly, Trump leaned into the chaos, calling the day he announced the tariffs “Liberation Day” and then suddenly pausing most of them mid-week. Treasury Secretary Scott Bessent framed it as part of Trump’s “maximum leverage” play to bring other nations to the negotiation table.
“President Trump created maximum negotiating leverage for himself,” Bessent said.
Yet critics aren’t convinced. Even if Trump aims to renegotiate dozens of complex trade agreements in just 90 days, experts say it’s wildly ambitious.
“Even with just a handful of trading partners, that would be a large undertaking,” said Greta Peisch, former general counsel at the U.S. Trade Representative’s office.
China Bears the Brunt as Uncertainty Lingers
Trump’s team insists that China has the most to lose, describing its model as “flood-the-world-with-cheap-exports.” But American companies are feeling the pain too—especially those importing Chinese electronics, toys, apparel, and tech components. China has also retaliated by slapping U.S. agricultural and machinery exports with steep tariffs.
So, why did Trump pause tariffs for others but not China? The messaging seems to suggest it’s a punishment for retaliation—and a negotiation tactic.
Still, uncertainty lingers. Markets may be up for now, but many are wondering: Is this just the calm before the next economic storm?
Bottom Line
The tariff pause delivered a market jolt—but also leaves a cloud of questions. Trump’s sudden pivot looks more like a tactical stall than a real resolution. While stocks soar and futures tick up, the global trade war is far from over.
As one analyst bluntly put it: “This 90-day pause is just a Band-Aid on a self-inflicted wound.”
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