Midday Wednesday, President Trump announced that a 90-day tariff "pause" will occur due to the fact that according to the president over 75 countries have already reached out in terms of negotiation regarding the tariffs. This pause means that during the next 90 days a universal rate will be set for all countries that have tariffs set on them, except for China. The universal rate will be 10%, the White House announced. Commerce Secretary, Howard Lutnick, took to X to say "the world is ready to work with President Trump to fix global trade".
On the complete opposite side of this, President Trump announced at the same time that the United States once again will increase their tariff rates on China. The newly announced number appears to be a 125% tariff rate. This is likely due to the fact that overnight China raised their tariff rate on the U.S. to 84%. It certainly looks as if we have a trade war on our hands, it will be very interesting to see how far this will go and what the result will be.
After the tariff draw back was announced almost all major stock indexes appear to have shot up from where they have been since the tariffs actually went into place. The Dow has surged 2,600 points, making that the largest rally in 5 years. Treasury Secretary Scott Bessent claimed that this move by President Trump "was his strategy all along". At this point I do not think that many people at all know what is going on or what direction we are heading. All that we know for sure is that trade relations between the U.S. and China are not improving with the two world-powers butting heads more and more.
Article: https://www.cnbc.com/2025/04/09/trump-announces-90-day-tariff-pause-for-at-least-some-countries.html
3 comments:
The next 90 days should be very interesting. Trump is also vouching for the abolishment of income tax among all states. How will the market react to that?
After the 90-day tariff pause was announced, the S&P 500 surged 9.5% in a few hours, marking its third-largest single-day recovery since World War II. The next day, it fell 3.5% as U.S.-China tariff rates continued to climb, now sitting at 145% and 125%, respectively. This volatility makes me wonder if President Trump is trying to intentionally influence the market, especially since he recently posted on Truth Social, saying, "This is a great time to buy!" just hours before the tariff suspension announcement.
This “pause” seems more like a pressure tactic than a peace offering. A 10% universal tariff might calm some allies, but hitting China with 125% just escalates the standoff. The market rally shows investors want stability ,but this strategy feels more like a gamble than a plan.
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