Asian Markets Rally as Trump Pauses Tariffs
Asian markets experienced a significant surge on Thursday following a surprise announcement from U.S. President Donald Trump, who declared a 90-day pause on most planned tariffs. This decision sparked optimism among global investors, contributing to a historic rally on Wall Street, where major indices recorded some of their largest gains in years. However, the relief did not extend to China, which remains subject to heightened tariffs.
Trump’s Tariff Announcement
In a post on Truth Social, President Trump announced a temporary halt to new tariffs for approximately 75 countries that have engaged in discussions with the U.S. and have not retaliated. He emphasized the importance of this pause, stating, “I have authorised a 90-day PAUSE.” Instead of imposing new tariffs, the U.S. will implement a 10% reciprocal tariff on these nations. However, China was notably excluded from this reprieve, with tariffs on Chinese goods increasing to 125%. Trump’s announcement has been met with mixed reactions, but he encouraged Americans to remain calm and invest, declaring, “THIS IS A GREAT TIME TO BUY!!!”
Wall Street’s Historic Gains
The announcement led to a remarkable day for U.S. markets on Wednesday, with major indices achieving unprecedented gains. The S&P 500 surged by 9.5%, while the Dow Jones Industrial Average jumped nearly 2,500 points. The Nasdaq experienced a staggering increase of 12.2%, marking its best performance in 24 years. This rally was largely attributed to the positive sentiment generated by Trump’s tariff announcement, which alleviated some of the economic fears that had been weighing on investors.
Asian Markets React Positively
The positive sentiment from the U.S. quickly spread to Asian markets. Japan’s Nikkei 225 index soared by 8.8%, gaining over 2,000 points shortly after the market opened. This surge reflected a strong sense of relief among investors. Similarly, Australia’s S&P/ASX 200 index rose by 6.3% in early trading, while Taiwan’s Taiex index climbed 9.2%, driven by gains in major tech stocks like TSMC and Foxconn. Hong Kong’s Hang Seng Index also joined the rally, increasing by 2.69%. Thailand’s stock market mirrored this trend, with the SET Index rising 4.5% after the U.S. announced a delay on a planned 36% tariff on Thai goods.
Global Trade Implications
While the pause on tariffs was welcomed in many regions, Japan’s government reiterated its call for the U.S. to reconsider other trade measures that affect key Japanese industries. Chief government spokesman Yoshimasa Hayashi expressed optimism about the tariff pause but emphasized the need for a broader review of U.S. trade policies, including tariffs on steel, aluminum, and automobiles. Meanwhile, France adjusted its 2025 GDP growth forecast downward from 0.9% to 0.7%, citing ongoing trade uncertainties as a significant factor.
In contrast, Indian markets did not share in the global optimism, with the Sensex and Nifty indices declining on Wednesday despite the Reserve Bank of India’s efforts to cushion the economy from tariff-related pressures. The Sensex fell by 379.93 points, closing at 73,847.15, while the Nifty dropped 136.70 points to end at 22,399.15.
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