President Donald Trump has declared a 90-day suspension of his proposed reciprocal tariffs, which has prompted a swift recovery in the stock market that had been adversely affected by last week’s tariff announcement. Technology stocks, including Apple, Sony, and Microsoft, experienced rapid gains following the declaration, with Tesla’s shares rising particularly fast, showing an increase of 22.69 percent as of that day. Intel’s stock saw an increase of over 17 percent, Nvidia climbed by more than 15 percent, and stocks such as Meta, Amazon, and Alphabet were also on the rise.
Trump made the announcement on his social media platform, Truth Social, stating, “I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
The pause is set to apply only to countries currently negotiating with the White House. Tariffs on goods from countries like China, which responded with their own reciprocal tariffs, remain unaffected. In fact, Trump introduced a new 125 percent tariff on China. The previously announced global 10 percent tariff will also continue to be enforced.
The initial rollout of these tariffs caused significant volatility in the market. Nevertheless, the temporary suspension for countries such as South Korea and Vietnam led to a notable increase in Apple’s stock value. This recovery follows what was described as Apple’s worst four-day stretch on the stock market since 2000 due to Trump’s tariff announcements.
The cryptocurrency market also benefited from the tariff suspension news, with Bitcoin rising above $82,000 after hovering in the mid-to-upper $70,000 range. Ethereum saw an 8 percent increase following the announcement.
The introduction of tariffs last week had a severe impact on the global economy, with the market outlook appearing grim over the weekend, leading some analysts to anticipate a potential “Black Monday.” On April 7, rumors circulated on Elon Musk’s platform, X, suggesting Trump was contemplating a tariff pause, which contributed to avoiding a market downturn. However, the White House later denied the accuracy of these rumors.
Despite the temporary pause on most tariffs, the U.S.-China trade conflict continues. Although Wall Street and Silicon Valley welcomed Trump’s announcement, the long-term consequences remain uncertain.