On April 9 (Indian time), US President Donald Trump made a surprising announcement. He declared that his administration would delay the implementation of new tariffs on goods from over 75 countries for the next 90 days. This move took global financial markets by surprise, causing an immediate rally in US stocks, with major indices rising over 10%. Asian markets also responded positively on April 10, although Indian markets remained shut due to Mahavir Jayanti.
While the delay applied to most nations, one key player—China—was left out. In fact, Trump increased tariffs on Chinese goods even more aggressively, continuing his tough stance against the Asian powerhouse. So why did Trump decide to delay tariffs just hours after pushing for them? Let’s break down the full story and what it means for the global economy.
Stock Market Pressure Forced Trump’s Hand: Investors React Swiftly
One of the biggest reasons for Trump’s sudden change in position was the negative reaction from the financial markets. As soon as news of the tariffs broke, Wall Street saw a sharp fall. Investors were alarmed, and major companies reportedly raised concerns about how such a move would affect business.
Just a day before the announcement, on April 8, there were rumours floating around that the tariffs might be delayed. These speculations alone had caused a small recovery in the market. But once the White House denied those rumours, the markets dipped again. This constant back-and-forth built up heavy pressure on the Trump administration from investors and corporate leaders who feared losses and business disruption.
The delay, when it finally came on April 9, immediately boosted market sentiment. The US stock markets recorded their strongest gains in weeks. Clearly, Trump had listened—if not to public outcry, then definitely to the financial world.
Key Advisors Convinced Trump to Hold Back the Tariffs Temporarily
According to insiders, Trump didn’t take this decision alone. In fact, it is being said that he was advised strongly by two senior officials—US Finance Minister Scott Besant and Commerce Minister Hovard Luntick.
These ministers reportedly highlighted the negative impact of the tariffs on both US companies and the global economy. They suggested that a pause would give Washington some breathing space to negotiate better trade terms and avoid further market instability. Trump was initially reluctant, but by early April 9, he had been convinced.
Though Trump later told the media that he had been thinking about the delay “for a few days,” the suddenness of the announcement indicates that it was more of a quick shift due to strong internal and external pressure.
China Left Out as Tariff Tensions Continue to Rise
While the 90-day delay was applied to most countries, China was given no such relief. In fact, the US doubled down on its aggressive policy. On April 9 itself, Trump announced a 125% tariff on Chinese imports, pushing the total tariff rate on Chinese goods from 84% to over 100%.
This was a sharp escalation in the US-China trade war, which has been going on for several months. It all started when the US imposed 20% tariffs on Chinese imports, which was followed by another 34%. China responded with equal tariffs on American goods, and the battle kept escalating.
Trump, known for his unpredictable style, took it personally when China hit back. The latest move to hike tariffs even more shows that the White House is in no mood to make peace with Beijing. While the rest of the world has received a temporary break, China continues to be a target.
Why Trump’s Tariff Policy Matters to the Global Economy
Tariffs are not just about one country’s internal policies. When a country like the US imposes or withdraws tariffs, it affects global trade routes, supply chains, stock markets, and investor confidence. That’s why Trump’s latest announcement sent such strong signals around the world.
Countries that export to the US are now in a wait-and-watch mode. They want to see if this 90-day pause leads to further talks or simply acts as a buffer before more tariffs are reintroduced.
Meanwhile, US-based multinational companies that depend on imports for raw materials or exports for revenue are trying to figure out their next moves. The uncertainty remains even after the delay, because no one can say for sure what Trump will do after the 90 days are over.
The Political Angle: Was This About Damage Control?
Many experts believe this decision was not just economic but political as well. Trump has been under constant pressure from within his party and the business community. His popularity had also started to dip due to rising costs and falling market confidence.
By delaying tariffs, Trump managed to calm markets and make himself look flexible without appearing weak. His team even tried to present the move as a “strategic victory” rather than a rollback. Finance Minister Scott Besant told reporters that this decision was proof of Trump’s smart leadership and ability to adapt. But critics argue that it shows the White House’s lack of planning and clear trade policy.
Global Reactions: Relief Mixed with Caution
Around the world, governments and business leaders welcomed the delay but also expressed concerns. Many see this as a short-term fix rather than a long-term solution. The European Union, for example, called for renewed talks with the US to find a more stable trade agreement. Asian countries, including Japan and South Korea, said they hope the US uses this 90-day period to rethink its aggressive trade approach.
China, however, reacted sharply. Chinese media called Trump’s move “unfriendly” and accused the US of trying to bully its way through global trade. The Chinese government also hinted at further counter-measures if the tariffs are not withdrawn completely.
Indian Market Impact: What to Expect on April 11
Indian markets were closed on April 10 due to Mahavir Jayanti, but experts expect a sharp opening on April 11. The rally in US and Asian markets usually has a strong influence on Indian equities. Sectors like IT, Pharma, and Auto that depend on exports are expected to see gains.
However, analysts also warn that the situation remains unstable. If Trump reintroduces tariffs after 90 days, or if China decides to strike back harder, global markets could suffer again. Indian investors need to stay alert and avoid over-committing to risky trades during this uncertain phase.
What Lies Ahead: Is the Trade War Really Cooling Down?
It’s hard to say if this pause marks the beginning of better trade relations. Given Trump’s record, anything can change overnight. The 90-day delay may just be a temporary tactic to calm markets and gain political points.
What’s more likely is that the US will try to use this time to strike new trade deals or extract better terms from its partners. Meanwhile, the tough stance on China shows that the US is not done fighting. The coming weeks will be crucial in understanding whether the world is heading toward trade peace—or just the eye of the storm.
