In a rather surprising development for the country on the brink of a trade war, US President Donald Trump has announced a 90-day pause on his Liberation Day tariff plan. Indeed, Trump took to his Truth Social platform to share that he authorized a halt on the plan for at least some affected countries.
The move orchestrated a monumental turnaround for the US stock market. Specifically, the announcement drove the Dow Jones Industrial Index to jump more than 2,400 points. Moreover, companies like Tesla (TSLA) and Nvidia (NVDA) saw shares skyrocket as much as 12% and 10%, respectively.
BREAKING: 🇺🇸 President Trump authorizes 90-day pause on tariffs.
— Watcher.Guru (@WatcherGuru) April 9, 2025
Also Read: China Announces Additional 84% Tariff on US Goods
Trump Authorizes Tariff Pause as Stock Market Explodes
Although we are just three months into the year, the United States has not had the greatest start to 2025. As US President Donald Trump announced a Liberation Day tariff plan, the US stock market plummeted. Moreover, it saw a host of analysts increase recession odds while the US dollar saw its status threatened.
Things turned the corner in a big way on Wednesday, as US President Donald Trump announced that he would be instituting a 90-day pause on the tariff plan for some of the countries affected. However, Trump did note that it would be increasing tariffs on imports from China to 125%, “effective immediately.”
Also Read: European Union to Impose Up to 25% Tariffs on US Goods
“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A. and other countries is no longer sustainable or acceptable,” he said. “I have authorized a 90 day PAUSE, and a substantially lowered REciprocal Tariff during this period of 10%, also effective immediately,” the US President added.
According to the Trump, over 75 countries had contacted the US to negotiate new trade deals. That appears to be the goal, as the tariff plan sought to shift the balance of trade. In a post to X (formerly Twitter), Commerce Secretary Howard Lutnick called the Truth Post “one of the most extraordinary” of his presidency thus far.