Trump announces a 90 day suspension of global tariffs, with tariffs on China rising to 125%, causing the stock market to soar
Former US President Donald Trump suddenly announced on April 9th that he would suspend the "equal tariffs" policy on most countries for 90 days, while significantly increasing tariffs on imported goods from China to 125%. This move immediately caused a global shock, especially in the financial market, which sparked a frenzy.
According to The New York Post, Trump issued a statement on his new social platform, Truth Social, stating that "the United States should not continue to be taken advantage of by other countries" and will "make the world understand the true meaning of fair trade". He emphasized that this tariff reset is just the beginning.
Suspend tariffs on most countries, open fire on China
According to The Wall Street Journal, Trump stated that he will suspend the implementation of the "reciprocal tariffs" plan imposed on multiple countries for a period of 90 days to "observe and renegotiate". The sanctions against China are not soft: the import tax on core products such as steel, electronic components, and automotive parts will be directly increased from 25% -50% to 125%.
The Guardian pointed out that China has not yet officially responded to this round of tax increases, but a spokesperson for the Ministry of Foreign Affairs stated at a regular press conference that "China will resolutely defend its own corporate interests and reserve the right to take all necessary countermeasures".
The US stock market surged, with a daily increase of over 3 trillion US dollars in market value
As soon as the news was released, the US stock market surged in response. According to data from Business Insider, the Dow Jones Industrial Average rose nearly 800 points, the Nasdaq index surged over 3.5%, and the overall market value surged over $3 trillion in 24 hours, marking the largest daily increase since 2025.
Market analysis suggests that investors expect the suspension of tariffs on most countries to bring short-term trade stability, while the high tariffs on China strengthen the "hardline trade" signal expected by Trump supporters.
Expert: may trigger a new round of global trade war
Despite the positive short-term market response, several international trade experts have warned that this move could potentially trigger a new round of global trade war. The Times quoted economists as saying that the 125% tariff on China is "unprecedented", and if China chooses to retaliate on an equal footing, US manufacturing and agriculture will be the first victims.
The Economic Policy Institute, a US think tank, predicts that if the trade tensions between China and the United States continue to escalate, it may affect over 600000 US jobs in the next six months.
Source: Network Integration