Asian Markets Rally After Trump’s Tariff Pause—But China Faces Harsher Penalties
Trump’s 90-Day Tariff Pause Sparks Investor Optimism
In a surprise move that sent shockwaves through global markets, President Trump announced on his Truth Social platform that he had authorized a 90-day pause on new tariffs for more than 75 countries actively engaged in trade negotiations with the U.S.
“I have authorized a 90-day PAUSE,” Trump wrote. “BE COOL! THIS IS A GREAT TIME TO BUY!!!”
However, this relief did not extend to China. Trump announced a sharp hike in tariffs on Chinese goods—from previous levels to a staggering 125%, signaling a further escalation in the U.S.-China trade war.
Wall Street Sees Biggest Single-Day Gains in Years
The announcement sparked a historic rally on Wall Street.
- S&P 500 jumped 9.5%
- Dow Jones surged nearly 2,500 points
- Nasdaq soared 12.2%, its best performance in over two decades
This surge marked one of the most bullish sessions for U.S. markets in recent history, fueled by investor optimism that the worst of the trade war might be easing—at least for most countries.
Asian Markets Respond with Explosive Gains
Asian stock markets followed suit, posting their own record-breaking gains:
Japan’s Nikkei 225 Index:
- Jumped 8.8% to 34,510.86
- Gained over 2,000 points within minutes of market open
Chief Cabinet Secretary Yoshimasa Hayashi welcomed the U.S. decision, saying:
“We received the latest US announcement positively… We continue to strongly demand that the United States review measures on its reciprocal tariffs and those impacting key Japanese industries.”
Australia’s ASX 200 Index:
- Rose 6.3% within the first 10 minutes of trading
Taiwan’s Taiex Index:
- Surged 9.2%, closing at 18,982.55
- Tech giants TSMC and Foxconn led the rally, gaining 10% and 9.8%, respectively
Hong Kong’s Hang Seng Index:
- Climbed 2.69%, adding 545.94 points
- Shanghai Composite Index followed with a 1.29% rise
Thailand’s SET Index:
- Opened 4.5% higher, gaining 48.85 points
- U.S. confirmed it would delay a planned 36% tariff on Thai goods, easing export fears
Global Reaction: Encouragement and Caution
While many trading partners cheered the announcement, some remain cautious. France, for example, trimmed its 2025 GDP growth forecast from 0.9% to 0.7%, citing ongoing uncertainty in global trade dynamics.
“Further revisions will depend on how trade negotiations evolve with the United States,” said French Economy Minister Eric Lombard.
China Left Out: Tensions Deepen
By excluding China and increasing tariffs on its exports, the U.S. has sent a clear message that tensions remain unresolved. Analysts suggest the move could further strain already fragile diplomatic and economic ties between the world’s two largest economies.
“It’s a calculated signal,” said Dr. Meena Krishnan, a global trade analyst. “Trump is offering relief to allies while doubling down on Beijing.”
Indian Markets Buck the Global Trend
Interestingly, Indian equities failed to ride the global rally. On Wednesday, the Sensex fell 379.93 points to 73,847.15, while the Nifty dropped 136.70 points to 22,399.15. This was despite the Reserve Bank of India cutting interest rates in a bid to protect the economy from trade headwinds.