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    Trump hits a 90 pause on tariffs on most partners, markets rejoice

    European Newsdesk Posted on

    ​WASHINGTON DC: In a significant policy shift, President Donald Trump announced on April 9, 2025, a 90-day pause on most recently imposed tariffs, maintaining a 10% levy for cooperating countries but escalating tariffs on Chinese imports to 125% due to China’s retaliatory measures.

    EU Countries Benefiting from the Pause

    While the specific list of European Union (EU) countries benefiting from the tariff pause has not been detailed, it is understood that the pause applies broadly to U.S. allies and trading partners who have not engaged in retaliatory tariffs against the United States. Given that the EU collectively represents a significant trading partner, member countries are likely included in this reprieve.​

    Impact on China

    The decision to raise tariffs on Chinese imports to 125% marks a significant escalation in the ongoing trade conflict between the U.S. and China. This move was in response to China’s earlier imposition of tariffs totaling 84% on U.S. goods. The heightened tariffs are expected to exacerbate tensions, potentially leading to further retaliatory measures from China and straining diplomatic relations.​

    Market Reactions

    The financial markets responded with notable volatility to these developments. Following President Trump’s announcement, the Dow Jones Industrial Average surged by 2,271 points (6%) to 39,916.64, marking its largest intraday gain since 2020. Similarly, the S&P 500 and Nasdaq 100 experienced increases of 5.9% and 7.7%, respectively. This rebound followed a period of significant market downturns driven by fears of an escalating trade war and its potential to trigger a global recession. Despite the temporary relief provided by the tariff pause, concerns remain about the long-term economic impact, particularly given the intensified trade barriers with China.​

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