Trump’s 90-Day Tariff Pause Boosts US Investors by $4.8 Trillion
On Wednesday, U.S. stock investors saw a remarkable $4.8 trillion gain just hours after President Donald Trump announced a 90-day reciprocal tariff pause for all countries, excluding China.
The market reacted positively to Trump’s announcement, with stocks rebounding into bullish territory after several days of decline. The Dow Jones data confirmed that U.S. stocks made a historic comeback, seeing a $4.8 trillion increase in market capitalization.
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The S&P 500 surged 8.9%, while the Nasdaq Composite jumped around 11%. The Dow climbed 2,756 points, or 7.2%.
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Goldman Sachs economist Jan Hatzius swiftly revised his recession forecast, shifting away from a base case of economic downturn. Instead, Goldman Sachs now projects a modest GDP growth of 0.5% in the fourth quarter of 2025 and a 45% chance of a recession.
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The positive sentiment extended to Asian markets as well, with Japan’s Nikkei 225 and South Korea’s KOSPI rising 7% and 5%, respectively. Similarly, China’s Shanghai Composite gained 0.6%, surpassing 3,200, and the Shenzhen Component surged 3.2% to 9,840.
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However, the Chinese yuan depreciated sharply, falling to its lowest level against the U.S. dollar in 17 years.
TRUMP CONFIRMS 104% TARIFF ON CHINESE GOODS
Earlier on Wednesday, Trump confirmed the introduction of a 104% tariff on Chinese goods, prompting China to retaliate with an 84% tariff on U.S. goods. In a surprising move, Trump then announced a 90-day tariff pause for all countries except China, signaling a shift in his trade strategy. The reciprocal tariff on China will now increase to 125%. Beijing, however, has pledged not to escalate the trade conflict further.
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