In a stunning reversal, President Donald Trump’s sudden announcement of a 90-day pause on global tariff hikes has shaken global markets in the best way possible. Stock indexes from Wall Street to Tokyo surged, with some regions recording their biggest one-day gain in years.
On Wednesday, the US stock market reacted immediately when Trump declared on Truth Social, “What a day, but even better days are to come!!!” His decision to halt new tariffs imposed just hours earlier triggered a massive surge globally.
By Thursday, the FTSE 100 in London jumped at the opening bell, while Germany’s DAX and France’s CAC 40 each rose more than 5%. There were even stronger reactions in Asia – Japan’s Nikkei rose 9.1% and South Korea’s Kospi rose 6.6%. Taiwan’s index bounced back with a massive 9.25% jump after suffering its worst drop earlier in the week.
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Hong Kong’s Hang Seng closed up 2%, while Chinese markets were more cautious. This was because China was specifically excluded from Trump’s tariff pause. In fact, tariffs on Chinese imports were raised even higher – now reaching 125%.
In response, Beijing quickly retaliated, announcing new duties of 84% on US goods. China’s foreign ministry made its stance clear: “There are no winners in trade wars… but we will not back down.”
Despite the US-China standoff continuing, the broad global reaction to Trump’s 90-day tariff suspension was one of relief. Investors and world leaders see the move as a rare opportunity to ease tensions and potentially negotiate.
European Commission President Ursula von der Leyen cautiously welcomed the move, saying the EU would also pause its planned retaliatory tariffs. However, she warned that “uncertainty and protectionism” still pose a threat to global stability.
Market analysts are divided. Some see Trump’s move as a strategic move to buy time for a favorable deal with China and Europe. Others worry it is merely a short-term strategy without a long-term solution.
In any case, global markets have taken a much-needed breather. But with China still in the crosshairs and only 90 days left on the clock, the question remains: is this the beginning of peace or the calm before another trade war storm?
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I am a US-based financial analyst and market researcher with over 10 years of experience in analyzing stock trends and economic news. Specializes in forecasting price movements of major US stocks and delivering timely financial updates. I believe in making complex market data simple and actionable for everyday investors.
