In a startling move that sent sighs of relief through global markets, President Donald Trump announced a 90-day pause on ‘reciprocal’ tariffs with most US trading partners on Wednesday, April 9 showing a potential cooling of trade tensions. The message: Play by US rules, or I’ll tax you into recession.
The decision, which Trump shared his own Truth Social platform, included a modest 10 per cent tariff reduction, effective immediately, offering relief to nations previously facing steeper rates. While tariffs on China jumped to 125 per cent, a solid and reasserted stance against Beijing’s trade practices, the broader pause was met with widespread enthusiasm, igniting a historic rally on Wall Street.
The Dow surged 2,200 points, a 5.9 per cent jump, while the S&P 500 climbed 6.5 per cent and the Nasdaq rocketed over 8 per cent. Investors breathed sighs of relief the unexpected reprieve, which Trump attributed to calming ‘yippy’ markets and jittery traders.
Trump gave tariff reprieve to everyone except China
At a White House event with race car champions, Trump quipped, ‘I thought people were jumping a little out of line. They were getting a bit afraid.’ The turn about face exposed Trump’s sharp negotiating technique prompting other nations to follow suit and fit in with his world vision. However, the message was clear with China where he laid on even higher tariffs.
Treasury Secretary Scott Bessent confirmed that the 10 per cent baseline tariff stays in place, but the pause on steeper reciprocal duties reflects a strategic shift. ‘This is about fairness and strength,’ Bessent said, echoing Trump’s vision of using US economic might to rejigging global trade. The President hinted at progress with China, as well, noting, ‘They want to make a deal—they just don’t know how quite yet.’
Despite retaliatory moves from Beijing and the EU, the market’s response suggests confidence in Trump’s approach. Stocks rocketed higher, erasing days of uncertainty and demonstrating that his tariff strategy, could deliver politically. As countries line up to renegotiate, President Trump still refuses to take Ursula von der Leyen’s calls.
