Wed, 09 Apr 2025

Wed, 09 Apr 2025 US stocks make historic gains after Trump pauses some tariffs

But Trump also raises tariffs on goods from China to at least 125% "effective immediately".
Trump has backed off on higher levies for trade partners that agreed to negotiate, but said he would raise tariffs on Chinese goods even further, to at least 125%, effective immediately. The move comes less than 24 hours after new tariffs came into force, hitting key trade partners such as Vietnam with a 46% levy. The Dow ended the day up over 7.8% and the Nasdaq soared more than 12%. Companies like Nike jumped 11% while Apple surged 15%. Despite the gains on Wednesday, US shares remain lower than they were before Trump's announcement, with the S&P 500 off about 3% and down more than 8% for the year. The levies on goods from China remain an economic challenge, as the country sent over $400 billion in goods to the US last year. The National Retail Federation had warned that shipments handled by US ports in May were likely to be 20% lower due to tariffs. Trump has said he hopes to strike a deal with China and is considering granting exemptions to individual companies from tariffs. However, his decision to offer a respite from reciprocal duties follows rising political pressure in Washington and from influential figures who backed him during last year's campaign. Goldman Sachs had predicted a recession triggered by steep duties just hours before Trump's announcement, but later revised its forecast, predicting minimal growth this year and a 45% chance of a recession.
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