In a significant policy reversal, US President Donald Trump on April 9 announced a 90-day pause on higher tariffs for over 75 countries, while escalating tariff pressure on China with a 125% duty, sending global stock markets into a rally.
Trump’s decision, coming just 13 hours after higher duties were implemented on 56 nations and the European Union, marked a dramatic shift in his tariff strategy. “I have authorised a 90-day PAUSE, and a substantially lowered reciprocal tariff during this period, of 10 percent, also effective immediately,” Trump said in a statement.
Trump’s April 9 Tariff Decision: Key Points
- A 90-day reprieve has been granted for over 75 countries from higher US tariffs.
- A 10% baseline reciprocal tariff remains effective for all imported goods.
- China excluded from the pause and hit with a 125% tariff, the highest yet.
- Existing tariffs on steel, aluminum, auto imports, and goods from Canada and Mexico remain unchanged.
- The pharma sector will continue facing tariffs, as Trump remains committed to taxing drug imports.
China Targeted Amid Tariff Easing for Others
China remains the primary target of Trump’s trade war. After initial 20% tariffs and subsequent escalations reaching 104%, Trump increased the tariff on Chinese goods to 125% on April 9, citing Beijing’s refusal to bow to what it called “tax blackmail.” China’s retaliatory tariffs on US goods currently stand at 84%.
Also Read: Moments after ‘they are kissing my a**’ remark, Trump pauses tariffs for 90 days
Market Reaction: Best Rally Since 2008
Trump’s unexpected tariff pause triggered an explosive stock market rally. The S&P 500 surged 9.5%, recovering from bear-market territory, while the Nasdaq 100 jumped 12%. According to analysts, over $1.5 trillion in market value was added, marking the biggest one-day gain since the 2008 financial crisis.
Even Asian stock markets, including Japan’s Nikkei and India’s Sensex, followed with their strongest performance in over two years. Economists at Goldman Sachs rolled back predictions of a US recession amid growing investor confidence.
Why the Sudden Pause?
Trump admitted the decision came after conversations with Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. “I thought that people were jumping a little bit out of line. They were getting a little bit yippy, a little bit afraid,” Trump told reporters.
Officials explained the reversal as a strategic move to increase Trump’s leverage. “The president created maximum negotiating leverage for himself,” Bessent said, adding that talks are ongoing with India, Vietnam, Japan, and South Korea.
Who’s Exempt?
Though a full list has not been released, Trump confirmed that over 75 countries that “have not retaliated” were granted exemptions. Notably, India, previously labeled a “tariff abuser” by Trump, is believed to be among the exempt nations, following bilateral trade discussions in recent weeks.
What’s Next?
As global markets cheer the pause, uncertainty remains over the future of trade policy. Trump’s message was clear: “This is a GREAT TIME TO BUY!” But with China firmly in his crosshairs, the trade war is far from over.
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