Sigh of Relief: Trump Hits Pause on Trade War
In a move that sent shockwaves through global markets, President Donald Trump has announced a 90-day pause on escalating tariffs in the ongoing trade war with China. After months of uncertainty, volatility, and tough talk, the sudden halt has left us asking: What changed? And more importantly—what’s next?
Why Has Trump Paused the Tariffs?
It's hard to know what was going on in the mind of Donald Trump with several contradictory claims from in and outside the White House. Trump’s administration claims it's a strategic window for renewed negotiations with China. But behind the scenes, pressure was mounting—from Wall Street, global leaders, and even domestic businesses hurt by retaliatory tariffs.
Consumer prices were rising. Farmers were fuming. CEOs were warning of economic slowdowns. With the election cycle already warming up, Trump may have seen the writing on the wall: a full-blown trade war could sink the very economy he boasts about.
What Does This Mean for the Stock Market?
The market's response? Pure euphoria.
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The Dow Jones jumped over 400 points following the announcement.
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The S&P 500 and Nasdaq surged, signaling renewed investor confidence.
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Global markets, particularly in Asia and Europe, echoed the bounce, with the Shanghai Composite and FTSE 100 both closing higher.
Investors are betting that the truce signals a shift back toward stability—at least for now.
Related: Is Trump Crashing the Market on Purpose or Clawing His Way Out?
Related: Trump's Tariff Tsunami: Asia Crashes, Europe Reels, Markets Panic
Which Markets Have Already Bounced Back?
In Asia, Japan’s Nikkei 225 soared by 8.2%, while the broader Topix index climbed 7.5% by early morning trading. Investors who had been bracing for economic fallout suddenly found themselves in rally mode. According to Reuters these stocks have quickly bounced back.
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The S&P 500 surged 9.52%, its biggest single-day gain since the 2008 financial crisis, closing at 5,456.90.
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The Dow Jones Industrial Average rocketed nearly 2,963 points, up 7.87%, to a record-breaking 40,608.45.
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The Nasdaq Composite leapt 12.16%, gaining 1,857 points—its best day since the dotcom bubble in 2001.
The rebound wasn’t just about relief—it was a stampede of capital back into risk, driven by a sense that the worst of the trade war may be on pause.
Tech stocks led the charge, with investor confidence flooding back into companies that had been battered by fears of higher import costs and disrupted supply chains. Semiconductors, e-commerce giants, and manufacturers posted double-digit gains.
The Art of the Deal: Masterstroke or Market Manipulation?
In classic Trump fashion, the day unfolded like a reality TV episode with markets crashing in the morning and soaring by sunset.
As sweeping tariffs rattled global economies, President Trump took to social media with a trademark flourish, urging the world to “be cool” just as Wall Street opened in turmoil. Then according to The Independent, minutes after trading opened on Wall Street Trump made yet another historical statement:
“THIS IS A GREAT TIME TO BUY!!!”
Within hours, Trump announced a 90-day pause on tariffs for most nations, softening the blow of the sweeping trade war, even as he hiked Chinese import duties to a staggering 125%.
The markets? They rebounded with force. Stocks that had dipped on tariff fears rocketed upwards. Suddenly, the White House was spinning the abrupt shift not as a retreat but as a masterclass in negotiation. A top official declared it “the art of the deal” in action, implying this was all part of Trump’s grand plan.
But was it really strategy—or sleight of hand?
The timing was suspiciously perfect for a market bounce, raising eyebrows among economists and traders alike. With Trump openly telling the world to “buy” just before a rally he engineered.
Whether intentional or not, one thing is clear: Trump knows how to move the markets with a tweet. The question now is whether he’s playing the long game, or just playing us.
Conclusion
Let’s be honest this pause was overdue. The tariffs have hurt more Americans than they’ve helped, and the global economy has been hanging by a thread because of Trump. If this 90-day truce is the beginning of the end of the trade war, it’s a win for common sense.
But let’s not pop the champagne just yet. Trump has a history of walking back his own walk-backs. Is this a sincere policy shift—or just another teaser trailer in his ongoing economic reality show?
