Tariffs Paused 90 Days - Markets Rise

John Barry | Wed Apr 09 2025

In a dramatic policy move, President Donald J. Trump announced a 90-day suspension of tariffs on imports from most countries—with one major exception: China, which will now face a steep 125% tariff on all goods entering the United States.

Speaking from the White House Rose Garden, Trump said the decision was designed to provide relief to American consumers and businesses while maintaining a firm stance against what he called "decades of economic abuse by China."

"We’re giving our allies a 90-day break to level the playing field—but China? They’ve manipulated their currency, stolen our technology, and taken American jobs for too long," President Trump said. "Effective immediately, all Chinese goods will be taxed at 125%."

A Two-Tiered Tariff Strategy

The temporary pause will apply to goods from key U.S. trading partners including Canada, Mexico, the European Union, South Korea, and Japan. Economists anticipate this could provide short-term price relief for U.S. businesses and consumers, particularly in manufacturing, construction, and retail sectors.

Conversely, the massive tariff increase on Chinese imports marks one of the most aggressive U.S. trade actions in history, likely to affect a wide array of consumer goods—ranging from electronics and textiles to automotive parts and raw materials.

Reactions:

Supporters of the move say it strikes a smart balance between relief and enforcement.

“President Trump is keeping America first—he’s cutting costs for everyday Americans while sending a clear message to Beijing,” said Senator J.D. Vance (R-OH).

Critics, however, are raising alarms over the potential fallout.

This kind of tariff escalation could destabilize global markets and drive up prices in the long run,” warned Janet Rosen, a senior trade fellow at the Peterson Institute. “We should expect retaliation from China.”

Market Response

The Dow Jones Industrial Average : +5.8%

Nasdaq: +8.6%

Bitcoin: +5.8%

QC500: +8.1%

China's Reaction

Chinese state media swiftly condemned the new tariffs as “economic aggression” and hinted at retaliatory measures, including tariffs on American agricultural products and rare earth materials.

A formal diplomatic response is expected within the next 48 hours.

Looking Ahead

The 90-day tariff pause is set to expire in early July, at which point the Trump administration says it will reassess trade compliance among partner nations. The President indicated that “further permanent relief” may be extended to countries that engage in “fair and reciprocal trade practices.”

 

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