Stunning U-Turn: Trump Pauses Tariffs, Fuels Global Market Rally

On April 10, 2025, President Donald Trump announced a 90-day pause on most of the newly imposed tariffs on several countries, marking a dramatic policy reversal. The decision came in response to earlier market volatility reminiscent of the disruptions during the early COVID-19 period. Notably, while reducing tariffs for many nations, the administration maintained a tougher stance on China by raising tariffs on Chinese imports to 125%.

The move triggered a historic rally across global financial markets, with major U.S. indices surging and key Asian markets registering significant gains. Political reactions were mixed, with some international and domestic leaders welcoming the temporary reprieve as a window for constructive dialogue, while critics questioned the strategy and its long-term impact on trade dynamics.