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Trump 90-Day Tariff Pause | China Faces 125% Tariff Hike
This is not just a political U-turn—it’s a strategic masterstroke in trade diplomacy with immediate consequences for stock markets, exporters, and international relations. Let’s dive deep.
At Trading Shastra Academy, we decode global events to help you trade smarter. On April 9, 2025, U.S. President Donald Trump announced a 90-day pause on most of his planned reciprocal tariffs, providing a breather to global markets—but with one explosive twist: China now faces a staggering 125% tariff on exports to the U.S.
Trump’s 90-Day Tariff Pause: What It Means for the Global Market in 2025
The recent announcement of a trump 90 days tariff pause has created a significant buzz across international financial markets. According to trump tariff news April 2025, this strategic move is being closely analyzed as part of the evolving trade war 2025 latest update. Experts believe this pause may temporarily ease tensions between the U.S. and China, giving markets a short-term boost. Understanding how tariff impacts global market is essential for investors, as changes in tariff policy often ripple through commodities, equities, and currency markets. The trump tariff pause also hints at a broader shift in U.S. trade strategy, especially as the us china trade 2025 relationship remains tense and uncertain. As the global economy reacts, this development could redefine trade flows and investor sentiment in the months ahead.
Trump’s Tariff Pause Explained
In a surprising pivot, Trump temporarily halted all new tariffs for 90 days on over 75 trading partners. The decision came amid mounting global pressure and financial market anxiety, especially from bond traders.
10% tariff stays across general imports
25% still applies to auto imports
Mexico and Canada exempted via USMCA
Treasury Secretary Scott Bessent hinted this pause could allow the U.S. to forge customized trade deals by June 2025.
Why China Got Hit Harder
While the rest of the world received a reprieve, China got the stick.
Trump slammed a 125% tariff on Chinese imports, accusing Beijing of mirroring U.S. tariffs instead of fair negotiations.
China’s Retaliation Expected
Trade experts forecast a sharp counter-move from China in the coming weeks—setting the stage for renewed trade war volatility.
Market Reaction to Trump’s Announcement
| Market | Reaction | Notable Trend |
|---|---|---|
| Dow Jones | +2.1% | Sharp rebound after policy clarity |
| Nasdaq | +1.8% | Tech stocks regain ground |
| Sensex | +682 pts (+0.9%) | Auto & FMCG surged |
| Shanghai Index | -1.2% | Fear of China’s export slump |
| Gold Prices | Up 1.3% | Investors shift to safe haven |
Trump’s gamble sparked optimism, but analysts warn this could be the calm before another trade storm.
What Indian Traders & Investors Should Know
Winners:
FMCG, Pharma, and Gold ETFs
Select Auto and Infra Stocks
Risks:
IT and Export-heavy sectors (due to global demand worries)INR volatility from FII flows
Trading Tip:
This is the perfect setup for news-based intraday trades. Watch sector rotation and use options strategies to hedge exposure.
Get in Touch
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Phone: +91 9717333901
Email: info@tradingshastra.com
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FAQs
A: It provides temporary global relief, boosting sentiment across export-related sectors.
A: Likely yes. Stay tuned for policy moves that could increase volatility in Asian markets.
A: Absolutely. Our advanced modules cover news-based volatility trading in detail.
A: No. It’s a negotiation tactic. A full trade deal is expected only by mid-2025.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions.
