Trump suspends tariffs — market soars: S&P 500 jumps 7% in one hour
After Trump’s cryptic posts on Truth Social, the S&P 500 index surged — all thanks to an unexpected 90-day suspension of tariffs, excluding those targeting China.
USA — On April 9, Donald Trump published a statement on Truth Social: the U.S. is immediately raising tariffs on Chinese goods to 125%, in response to what he called “China’s lack of respect for global markets.”
At the same time, Trump said that more than 75 countries had contacted U.S. officials seeking negotiations on trade, tariffs, and currency manipulation.
Given their restraint and refusal to retaliate, Trump announced a 90-day pause on tariffs for these countries and a reduced reciprocal tariff rate of 10%.
Just 40 minutes after the announcement, the S&P 500 index soared more than 7%.
Trump’s morning posts — “Be Cool” and “This is a great time to buy” — turned out to be harbingers of a major market rally.
Experts note that such spikes typically occur only during global turmoil — like the pandemic or the 2008 financial crisis.
While the sharp rise could prove temporary, the market’s reaction suggests investors took Trump’s move as a signal of potential improvement in the global trade outlook.
It’s worth noting that Beijing responded to Washington with a symmetrical move, raising tariffs on U.S. goods after the U.S. hiked tariffs on Chinese imports to 84%, further escalating the trade tensions between the two countries.