Global Markets Rally as Trump Pauses Most Tariffs, Hikes China Duties; S P 500 Jumps 9.5%

Global stock markets surged on April 10, 2025, after U.S. President Donald Trump announced a 90-day pause on tariffs for most countries, while simultaneously increasing tariffs on China. This move followed a period of significant market volatility caused by the initial imposition of tariffs. The S&P 500 index closed 9.5% higher on April 9, marking its best day since 2008. Asian markets followed suit, with Japan's Nikkei 225 jumping almost 9%. Despite the pause for most nations, tariffs on Chinese imports were raised to 125%. China has retaliated, imposing 84% tariffs on U.S. imports. Goldman Sachs had previously adjusted the probability of a recession to 45%, but after Trump's announcement to pause tariffs for most countries, they rescinded the recession forecast and reverted to their previous baseline estimate for economic growth in 2025.