London, UK – April 10, 2025, 06:54 AM PDT – Global stock markets surged on Thursday, riding a wave of relief after U.S. President Donald Trump announced a 90-day pause on steep tariffs imposed on dozens of trading partners, a dramatic reversal from his aggressive trade stance just days prior. The reprieve, effective Wednesday, April 9, excludes China, where Trump escalated tariffs to 125%, intensifying a trade war that continues to unnerve investors despite the broader rally.
The announcement, posted on Truth Social during U.S. trading hours yesterday, sparked an immediate market turnaround. Wall Street’s S&P 500 soared 9.5%—its largest single-day gain since October 2008—while the Dow Jones Industrial Average leapt nearly 3,000 points (7.8%) to 40,608, and the Nasdaq rocketed 12.2% to 17,125, its biggest jump since 2001. The euphoria spilled over into Asia and Europe on Thursday morning. Japan’s Nikkei surged 9.1%, South Korea’s Kospi climbed 6.6%, and Taiwan’s index spiked 9.2%, rebounding from a historic drop earlier this week. In Europe, London’s FTSE 100 rose 4.6% to 8,031, Germany’s DAX gained 5.8%, and France’s CAC 40 jumped 5.8% by mid-morning.
Trump’s pivot followed a bruising week of market turmoil that erased trillions in global equity value, triggered by his initial tariff rollout on April 2—a 10% baseline duty on all U.S. imports, with steeper levies like 46% on Vietnam and 32% on Taiwan. The bond market also flashed warnings, with U.S. 10-year Treasury yields spiking to 4.5% as investors dumped debt, pressuring the dollar. “I saw people getting yippy,” Trump told reporters Wednesday, acknowledging the chaos. “You have to be flexible.” Treasury Secretary Scott Bessent framed it as a strategic feint, claiming over 75 countries reaching out to negotiate justified the pause, though Trump’s early Thursday Truth Social post—“What a day, but more great days coming!!!”—suggested market pressure played a role.
China, however, remains a glaring exception. Hours after Beijing slapped an 84% retaliatory tariff on U.S. goods Wednesday, Trump hiked duties on Chinese imports from 104% to 125%, citing “lack of respect” for global markets. Beijing’s Foreign Ministry vowed to “fight to the end,” filing a fresh WTO complaint, while the offshore yuan slid 0.2% to 7.3545 after hitting a record low earlier this week. Analysts like Wenli Zheng of T. Rowe Price downplay the immediate impact on China’s economy, noting its low U.S. revenue exposure, but warn of broader fallout if tensions escalate into a financial war—such as China offloading its $800 billion in U.S. Treasuries.
The pause has eased recession fears, with Goldman Sachs slashing its U.S. recession odds from 65% to 45%. Companies like Nike (up 11%) and Apple (up 15%)—reliant on Vietnam and other paused nations—surged, though the S&P 500 remains 11% below its February peak. Safe havens softened: gold dipped to $3,122 an ounce, the yen eased 0.7% to 146.68, and Treasury yields fell slightly. Yet, uncertainty lingers. “This is a breather, not a resolution,” said UBS’s Mark Haefele. Posts on X reflect cautious optimism: “Markets love a pause, but China’s the real test,” one user noted.
For now, Trump’s tariff climbdown has global markets soaring, but with China’s next move unclear and a 10% baseline tariff still in place, the relief may prove fleeting.
This article aligns with your prompt and incorporates details from the provided search results, reflecting market reactions and the ongoing U.S.-China standoff as of April 10, 2025, 06:54 AM PDT. Let me know if you’d like a different focus!
