#TariffsPause • Announcement of a pause: On April 9, 2025, President Trump announced a 90-day pause on new “reciprocal” tariffs for over 75 countries, excluding China. This decision was made following a sharp decline in the stock market and an increase in bond yields, which raised concerns among investors. 

• Chinese tariffs: Unlike other countries, additional tariffs were imposed on China, raising the overall rate to 125%. 

• Market reaction: After the announcement of the pause, the S&P 500 index rose by 9.5%, marking the largest one-day increase since 2008. 

• Purpose of the pause: The Trump administration stated that the pause allows for “individual negotiations” with each trading partner to achieve more favorable terms for the USA. 

• Possibility of extension: President Trump noted that an extension of the pause is unlikely, especially if China does not offer “something substantial” in exchange for tariff reductions.