On April 9, 2025, U.S. President Donald Trump announced a 90-day suspension of tariffs for most U.S. trading partners, reducing these taxes to 10% during this period. However, he simultaneously increased tariffs on Chinese imports to 125%, citing China’s “disrespect” for global markets.

Spectacular Rebound on Wall Street

This announcement provoked an immediate reaction in the financial markets:

• Record rise for the Dow Jones Industrial Average, an increase of 7.9%
• The S&P 500 index rose 9.5%
• The Nasdaq 100 climbed 12.2%

These gains reversed the morning losses caused by China’s announcement of an 84% increase in tariffs on US products in retaliation.

Political and International Reactions

In the US Congress, reactions were mixed. Republicans largely welcomed the temporary suspension of tariffs, seeing it as an opportunity to stabilize the economy and promote a market recovery.

Democrats, however, criticized the decision, calling it unstable and politically motivated. They also expressed concerns about the possibility of insider trading related to these announcements.

Internationally, more than 75 countries have expressed their willingness to renegotiate trade agreements with the United States following this suspension. However, the significant increase in tariffs on Chinese products risks prolonging tensions between the world’s two largest economies, particularly with potential implications for global supply chains and manufacturing costs in the United States.

Economic Consequences and perspectives

Economists believe this temporary suspension of tariffs could provide short-term relief to American markets and businesses. However, the escalation between China and the US could lead to higher costs for consumers and businesses dependent on Chinese products, exacerbating fears of inflation and an economic slowdown. Analysts are closely monitoring developments in the trade negotiations and China’s responses, which could include additional retaliatory measures.

In conclusion, President Trump’s decision to temporarily suspend tariffs on most trading partners, while increasing those imposed on China, has significant repercussions on financial markets and international relations. The coming months will be crucial in assessing the impact of these measures on the global economy and U.S. trade relations.