Market Reacts Positively to Tariff Adjustments
The U.S. stock market surged on Wednesday after President Donald Trump announced a 90-day pause on reciprocal tariffs for all countries except China, significantly easing global trade war concerns.
At 2:08 PM ET:
-
Dow Jones climbed 2,962 points (+7.9%)
-
S&P 500 gained 9%
-
Nasdaq Composite soared 12%
This sharp rally came after a week of steep losses following initial reciprocal tariff announcements, reflecting a shift in investor sentiment.
China Tariff Hiked to 125%; Temporary Relief for Others
In a Truth Social post, Trump confirmed a tariff increase on Chinese goods to 125%, citing China’s continued trade practices as the reason. For other countries, tariffs were lowered to 10% for 90 days, allowing for country-specific negotiations.
Notable Updated Tariff Rates:
-
China: 125%
-
European Union: 20%
-
Japan: 24%
-
Vietnam: 46%
-
South Korea: 25%
-
Taiwan: 32%
Over 75 countries have reached out to U.S. trade officials, expressing interest in customized trade deals during this pause, according to Treasury Secretary Scott Bessent.
Economic Outlook Improves Slightly
The easing of trade tensions also caused Goldman Sachs to revise its recession probability from elevated levels back to 45%, projecting 0.5% GDP growth amid stabilized market sentiment.
Tech and Auto Stocks Lead Gains
Investors rushed back into beaten-down tech and automotive names:
-
Tesla (NASDAQ: TSLA) jumped 22%, helped by Benchmark’s addition of the stock to its “Best Ideas” list.
-
NVIDIA, Meta, Amazon, and other AI-linked firms saw strong inflows.
-
Alphabet (GOOGL) reaffirmed its $75B AI investment strategy.
Track Market Movements with Relevant Data
To monitor sector-wise changes from evolving trade policies, the Sector Historical (Market Overview) API offers valuable insight into how different sectors respond over time.
For updated macroeconomic indicators influenced by tariffs and trade decisions, use the Economics Calendar API to track inflation, manufacturing, and trade-related data as they’re released.
Conclusion
The 90-day tariff reprieve marks a pivotal moment in U.S. trade policy, calming investor nerves and creating room for diplomacy. As negotiations unfold and markets adjust, the spotlight remains on China’s response and the broader economic ripple effects.
