- On April 9, 2025, Trump paused tariffs for most nations—excluding China, where rates jumped to 125%.
- Markets and crypto surged in response, with Bitcoin up 9% and the Nasdaq seeing its biggest gain since 2001.
What Happened: On April 9, 2025, President Donald Trump announced a 90-day pause on tariffs affecting dozens of nations, excluding China, where tariffs were instead raised to 125% effective immediately. This decision came after a tumultuous week of market reactions to his initial sweeping tariff announcements made on April 2, 2025, which imposed a universal 10% tariff on all imports and higher “reciprocal” tariffs on specific countries (e.g., 20% on the EU, 24% on Japan, and 34% additional on China). The pause was described as a response to market unease and global pressure, with Trump stating it was “written from the heart” to calm jittery investors and trading partners. However, the exclusion of China from the pause intensified trade tensions, with Trump signaling no intention to negotiate with Beijing in the immediate term, instead focusing on talks with other nations.
Why the Tariff Pause Matters: The initial tariff announcement on April 2, 2025, which imposed a universal 10% tariff on all imports plus higher “reciprocal” tariffs for several countries, sent shockwaves through global markets. Investors feared a sharp escalation in trade wars, higher consumer prices, and disrupted supply chains, leading to a sell-off in risk assets like stocks and cryptocurrencies. The pause has signaled a temporary de-escalation, calming markets by delaying these impacts for most countries (except China) and giving time for negotiations. The pause has clearly helped restore some investor confidence.
Crypto is in the green again after Trump announces 90-days pause on tariffs
Following the tariff pause announcement on April 9, 2025, cryptocurrencies experienced a significant relief rally.
Bitcoin spiked by more than 9% within 24 hours, reaching approximately $82,305.55 by late Wednesday afternoon, April 9, 2025. Earlier that day, it had dipped to $74,567.02 amid broader market uncertainty, reflecting a strong recovery post-announcement.
Ethereum has gained over 12%, rebounding from a low earlier in previoius days that saw it drop more than 20% week-to-date to its lowest in over two years.
Dogecoin also rose by more than 12%, aligning with the broader crypto market surge.
XRP has increased by over 12%, mirroring the positive sentiment.
Solana has oared by more than 14%, showcasing one of the strongest gains among major cryptocurrencies.
This rally reversed a week-long decline triggered by the initial tariff announcement, where Bitcoin had fallen 10% to below $78,000 by April 7, 2025, highlighting its correlation with broader market risk sentiment rather than acting as a hedge.
Major Stock Markets and Key Indices Rebound
The tariff pause sparked a dramatic rebound in global stock markets on April 9-10, 2025.
In the U.S. markets, S&P 500 surged 9.5% on April 9, its biggest daily gain since 2008, closing near its opening levels after slipping into bear market territory earlier in the week (down 18% from its mid-February peak by April 7).
Nasdaq Composite jumped 12.16% (1,857.06 points) to 17,124.97, its largest gain since January 2001.
Dow Jones Industrial Average rebounded 747 points (2%) overnight into April 10, following a steep 4% drop on April 3, its worst day since June 2020.
Russell 2000 (Small Caps) gained 8.66%, its biggest one-day jump since March 2020.
Asian markets closed higher on April 9, halting a decline fueled by the initial tariff rollout. Japan’s Nikkei, previously set for its worst week in five years, saw some recovery, though specific daily gains were not detailed.
European markets also showed signs of stabilization on April 9, with money reportedly shifting from the U.S. to Europe.
The relief rally was tempered by lingering uncertainty about the post-90-day period, with investors wary of potential volatility if negotiations falter.
What is driving the market according to global leaders
On April 7, 2025, during a White House visit, Benjamin Netanyahu pledged to “eliminate the trade deficit with the United States” and remove trade barriers, hoping to secure tariff relief. Post-pause, Israel’s response remained focused on negotiation, though no new statements were reported by April 10.
Shigeru Ishiba, the prime minister of Japan, had voiced “strong concerns” on April 7 about the initial 24% tariff, urging Trump to reconsider during a call. After the pause, Japan was noted as a priority in negotiations by Treasury Secretary Scott Bessent, suggesting a softening stance.
European Commission President, Ursula von der Leyen, called the initial tariffs a “major blow to the world economy” on April 3, advocating for a united EU response. Post-pause, she held “constructive” talks with China’s Li Qiang on April 9, exploring a trade diversion mechanism to mitigate U.S. tariff impacts.
Mark Carney, the Prime Minister of Canada, vowed on April 3 to protect Canadian workers with countermeasures. The pause likely eased immediate pressure, though no specific reaction to it was noted by April 10.
Goldman Sachs has rescinded its recession forecast after the pause, reverting to a baseline of economic growth in 2025, signaling optimism about de-escalation.
JPMorgan had revised its outlook on April 4, post-initial tariffs, predicting a 60% recession chance and a U.S. GDP decline of 0.3% with unemployment rising to 5.3%. The tariff pause may adjust this view, though no updated statement was available by April 10.
Gina Bolvin, President of Bolvin Wealth Management Group Inc., described the pause as a “pivotal moment,” noting the positive market reaction but cautioning about uncertainty beyond 90 days.
Bill Ackman, Founder and CEO of Pershing Square Capital Management, had initially warned of an “economic nuclear winter” unless Trump paused tariffs, a view validated by the April 9 announcement, though he had not commented directly on it by April 10.
On April 7, UBS analysts estimated that Apple’s high-end iPhone could rise by $350 (30%) due to tariffs. The pause likely delays such impacts for non-China supply chains.
Overall, the Trump’s 90-day tariff pause has triggered a robust recovery in crypto and stock markets. Bitcoin led a 9%+ crypto surge, while the S&P 500 and Nasdaq posted historic gains, reflecting relief from earlier tariff-induced fears. Global leaders continued negotiations, with Japan and the EU adapting strategies, while broking houses expressed cautious optimism amid unresolved long-term questions. The exclusion of China, however, keeps trade war risks alive, potentially shaping market dynamics through mid-2025.
Read Also: Trump’s Tariff Shock Erases $3.1 Trillion From U.S. Markets
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