Trump pauses tariffs; Asian markets rebound swiftly.
Trump Tariffs Impact Live Updates: In a surprising twist to the global trade landscape, former President Donald Trump has announced a 90-day pause on tariffs for several countries. However, China has been notably excluded from this relief. Instead of a pause, the tariff rate on Chinese imports has been sharply increased to 125%. This move has sparked widespread concern among economists and international leaders, who fear it may further escalate tensions between the U.S. and China. While Asian markets initially rebounded on news of the broader pause, uncertainty remains over how this targeted escalation will affect global supply chains and inflation.
Trump Tariffs News Live Updates: Asian Markets Surge, Trade War With China Escalates
April 10, 2025 — In a significant development with global ramifications, U.S. President Donald Trump announced a 90-day pause on tariffs for most countries, following mounting international pressure and economic concerns. However, China has been explicitly excluded from this pause, and instead, the Trump administration has raised tariffs on Chinese imports to a staggering 125%. This decision has sent shockwaves across the diplomatic and economic landscape, reigniting fears of a full-scale trade war between the world’s two largest economies.
The decision came amid global outcry over the damaging effects of Trump’s aggressive tariff policy. Numerous allies, trading partners, and economists had urged the U.S. to reconsider its blanket tariff hikes, which have strained international relations and disrupted supply chains across multiple industries. The partial retreat—albeit excluding China—provided some immediate relief to jittery investors and financial markets, which had been on edge over escalating trade tensions.
Asian Markets Rebound
Asian stock markets reacted positively to the announcement of the temporary tariff relief, even though China was left out of the deal. Investors interpreted the move as a potential sign of de-escalation, or at least a strategic pause, in the ongoing global trade conflict.
Japan’s benchmark Nikkei 225 index surged by 8%, marking one of its strongest intraday performances in recent years. Similarly, South Korea’s Kospi index climbed over 5%, and Australia’s ASX 200 gained 5% during early morning trading hours. Analysts attributed the rally to renewed investor confidence sparked by the tariff pause and hopes that further easing measures might follow.
Despite the market rebound, the exclusion of China from the tariff moratorium underscored the growing divide between Washington and Beijing. Many experts warned that the relief could be short-lived if the trade war with China escalates further.
China Responds with Countermeasures
China responded swiftly and sternly to the new 125% tariff hike imposed by the U.S. on its goods. In a strongly worded statement, Beijing announced a set of “countermeasures,” declaring that it would not yield to what it termed “tax blackmail” by the Trump administration. As part of its retaliatory action, China has slapped an 84% tariff on a broad range of American products, including agricultural goods, machinery, and electronic components.
“The United States must understand that China will not be coerced or threatened into submission,” said a spokesperson from China’s Ministry of Commerce. “We will protect our national interests and support our domestic industries against unjust external pressure.”
The tit-for-tat escalation has once again placed U.S.-China relations on a razor’s edge. Trade experts fear that the conflict may evolve into a prolonged standoff, further destabilizing global economic recovery efforts and affecting key industries worldwide.
Trump Justifies Tariff Policy
Defending his decision, President Trump accused foreign countries, especially China, of imposing harsh duties on American goods and “plundering” the U.S. economy for decades. At a press briefing following the announcement, Trump claimed that the increased tariff was necessary to protect American industries and reduce dependency on foreign imports.
He also noted that the 90-day pause for other countries was a chance for them to come to the negotiating table, adding, “This is not a retreat. It’s a strategic pause. Our resolve to defend American jobs and businesses remains firm.”
U.S. Markets Soar
Despite the rising geopolitical tensions, U.S. stock markets rallied sharply on Wednesday, April 9, reversing earlier declines. Investors welcomed the temporary tariff reprieve, even as uncertainty loomed over the U.S.-China standoff.
The Nasdaq Composite leapt by 1,867.06 points, or 12.16%, reaching 17,124.97, while the S&P 500 climbed 474.93 points, or 9.53%, to settle at 5,456.20. The dramatic turnaround indicated a renewed sense of optimism, albeit cautious, among investors who had been bracing for a more turbulent fallout from the trade war.
Analysts noted that while the markets are celebrating short-term gains, the underlying volatility remains high. Huge swings have become routine in global financial markets—not just on a day-to-day basis but hour by hour—as traders attempt to gauge the long-term effects of Trump’s unpredictable trade strategy.
What Lies Ahead?
The latest developments mark yet another chapter in the ongoing U.S.-China trade conflict, which has repeatedly rattled global markets since Trump first imposed tariffs during his presidency. While the 90-day pause may provide breathing room for some economies, the situation with China remains highly volatile.
Economists warn that unless both Washington and Beijing return to the negotiating table soon, the global economy may be heading toward a deeper downturn. The stakes are high, not only for the U.S. and China but for all nations dependent on global trade and supply chains.
As the world watches closely, questions linger: Will Trump’s hardline strategy force China to concede, or will it backfire and fuel further economic instability? And how will global markets continue to respond to a conflict that seems far from resolution?
Only time will tell whether this is a turning point or merely a pause before the next round of escalation.