Trump’s Tariff Pause Global Stock Market Rally: S&P 500, Nasdaq Gains, China Tariffs, Recession Outlook
10th April 2025, Kathmandu
US President Donald Trump’s announcement of a 90-day pause on tariffs for almost 60 countries has resulted in a major boost to the stock market. Following the news, the S&P 500 rose by 9.52 percent.
Trump’s Tariff Pause Global Stock Market
The Nasdaq Composite, known for its concentration of technology companies, saw an even larger surge, increasing by 12.16 percent. Investors reacted favorably, pushing both indices to their biggest one-day gains in years. The sharp increases reflect a renewed sense of confidence in the US economy after months of trade uncertainty.
Asian Markets Follow the US Lead
Asian markets quickly mirrored the positive movement in the US. Japan’s Nikkei 225 surged by about 7 percent at the opening, while South Korea’s KOSPI also gained around 5 percent. Australian stocks followed the trend with notable increases. This broad rally highlights the global ripple effect of the US stock surge, as investors in Asia responded to the newfound optimism in the global markets.
Trump’s Continued Pressure on China
While Trump suspended tariffs for other countries, he did not extend this pause to China. Instead, he raised the tariff on Chinese imports to 125 percent. This decision further escalates the trade conflict between the two largest economies in the world. The ongoing tensions have created a complex environment for global trade. The US has been critical of China’s trade practices, and Trump’s tariff increases are meant to address what the administration considers unfair trade policies. The higher tariff rate on Chinese goods is expected to keep pressure on China and could prolong the ongoing trade standoff.
Goldman Sachs Adjusts US Recession Outlook
Goldman Sachs also adjusted its economic outlook following the tariff news. Earlier, the investment bank had predicted that the US would likely face a recession within the next year. However, in light of the positive market reactions to the tariff pause, Goldman Sachs revised its forecast, stating that a recession is now less likely. Despite the changes to the outlook, the bank warned that trade-related uncertainty remains high, and this could have long-term effects on the US economy.
Concerns Over Trade Policy Remain
While the market rally brought hope, concerns over trade policies continue to linger. The US has indicated that it intends to keep tariffs in place on Chinese imports, which raises doubts about the future stability of the global trading system. As China responds to these tariffs, both sides may continue to impose retaliatory measures. The uncertainty around trade policy could lead to further volatility in the markets.
Global Economic Uncertainty Persists
Despite the short-term optimism following the US stock surge, the global economic environment remains fragile. Trade tensions between the US and China have disrupted supply chains and trade flows, particularly in key industries like technology and manufacturing. Experts are closely watching how the trade war evolves, as its outcomes will likely shape economic growth in both the US and China, as well as the broader global economy.
In summary, the pause in tariffs brought a significant boost to global stock markets, especially in the US and Asia. However, the situation remains fluid. The US’s decision to raise tariffs on Chinese goods has intensified the trade dispute, and market analysts warn that uncertainties about trade policies could continue to influence global financial markets in the months ahead.
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