Bloomberg Daybreak: Europe Edition Trump’s 90-Day Pause, 125% Tariffs on China, Record Market Rally
Apr 10, 2025
In a surprising move, President Trump announced a 90-day pause on higher tariffs, sending the S&P 500 soaring by 10%. As trade tensions rise with China, new discussions on economic stimulus emerge among Chinese leaders. The bond market experiences chaos as Trump praises it, while volatility grips financial markets following his policy reversals. Concerns grow over the potential impacts on the UK housing market. Amidst this tumult, China grapples with trade deal ambitions and currency fluctuations, leaving global markets in a state of uncertainty.
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Trump's Bipartite Tariff Strategy
- Trump paused higher tariffs on dozens of countries but raised tariffs on China to 125%.
- This created a bifurcated trade policy between China and other global trade partners.
Market Rally After Tariff Pause
- Markets rallied strongly after Trump's tariff pause except China tariffs remained high.
- The S&P 500 gained nearly 10%, marking the biggest rally since 2008 amid relief in financial markets.
Trade Chief Surprised by Tariff Pause
- Trade Representative Jemisin Greer was unaware of Trump's tariff pause until it was publicly announced.
- The decision was abrupt enough that even his own officials learned it simultaneously with the public.