The Art of the Deal: Market Zooms After Trump Announces 90-Day Tariff Pause

the staff of the Ridgewood blog

Washington DC, the U.S.-China trade war has entered a new chapter. In a sharp response to the Trump administration’s aggressive trade policies, China announced new retaliatory tariffs of 84% on U.S. imports early Wednesday, escalating tensions between the world’s two largest economies.

The move comes on the heels of President Donald Trump’s latest tariff hike on Chinese imports, raising the rate to 125%, following an earlier 104% tariff. The tit-for-tat strategy mirrors Trump’s own advice from his 1987 best-selling book The Art of the Deal, emphasizing high-pressure negotiation tactics to gain leverage.

🇺🇸 Trump’s 90-Day Tariff Pause Sparks Market Surge

Later in the day, President Trump attempted to cool global economic jitters by announcing a 90-day pause on most tariffs above 10%, excluding Chinese imports. This unexpected shift prompted a historic rally in U.S. stock markets, as investors welcomed signs of de-escalation—even if temporary.

• S&P 500 soared by 9.5%

• Dow Jones surged 7.9%

• Nasdaq spiked 12.2%

It was the S&P 500’s biggest single-day gain since 2008, helping claw back some of the recent losses triggered by escalating trade tensions.

🌍 Global Trade Shakeup: 70+ Nations Seek New Deals

Since last week’s announcement of broader tariffs impacting over 75 countries, more than 70 nations have reached out to the U.S. administration in hopes of renegotiating trade agreements. These countries are aiming to avoid steep tariff increases and ensure continued access to the American consumer market.

The unprecedented pressure on global trade has forced allies and competitors alike to the negotiating table, highlighting the far-reaching impact of U.S. tariff policy.

⚠️ Economists Warn of Recession Risks

Despite the temporary relief, economic experts have warned that prolonged tariffs could tip the U.S. into a recession. JPMorgan CEO Jamie Dimon was among the top voices cautioning that the broad and aggressive use of tariffs would stifle economic growth, push up prices, and reduce consumer spending power.

Since the first wave of tariff hikes:

• The S&P 500 entered bear market territory, losing nearly 20% from its recent high.

• U.S.-listed stocks lost $7.7 trillion in value, sparking fears of long-term damage to the financial markets.

🏭 Tariff Price Hikes May Be Delayed Until Summer

In related developments, Richmond Federal Reserve President Tom Barkin stated that the inflationary impact of the tariffs may not hit consumers immediately. Many businesses are currently working through existing inventory, which may delay price increases until mid-summer 2025.

This lag could provide short-term economic stability, but businesses and consumers should brace for rising costs in the months ahead—particularly if tariffs remain elevated.

🔍 What to Watch Next in the U.S.-China Trade War

As the situation continues to evolve, key developments to monitor include:

• Whether Trump extends the 90-day tariff pause

• China’s next move in the escalating trade conflict

• Ongoing stock market volatility and consumer pricing shifts

• Potential renegotiation of trade agreements with U.S. allies

📊 Final Thoughts

While markets rejoiced at the temporary tariff pause, the underlying tensions between the U.S. and China remain unresolved. With both sides digging in and global economies caught in the crossfire, the long-term effects of the trade war could reshape the future of international commerce.

Stay tuned for updates as we continue to cover the evolving U.S.-China trade landscape, its impact on global markets, and how it affects your wallet, investments, and future.

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