Trump’s Tariff Suspension: Market Surge and the Underlying Controversies
On April 9, 2025, U.S. President Donald Trump announced a 90-day suspension of tariffs on major countries and a reduction of existing high tariffs to 10%. This triggered a sharp rally in global financial markets but also ignited intense political and economic controversy. In this post, we will closely analyze the impact of President Trump’s decision on financial markets and the key controversies beneath the surface.
📈 Explosive Market Reaction Following the Tariff Suspension Announcement
Following President Trump’s announcement, the New York Stock Exchange recorded a historic surge. On the day of the announcement, major indices jumped as follows:
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Dow Jones Industrial Average: +7.87%
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S&P 500: +9.52%
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Nasdaq: +12.16%
In particular, the tech-heavy Nasdaq index posted its largest single-day gain in 24 years. This announcement significantly stabilized investor sentiment, and major tech company stock prices also saw strong upward momentum.
| Major Companies | Stock Price Increase |
|---|---|
| Tesla | +22.69% |
| Apple | +15.33% |
| Nvidia | +18.72% |
This sharp rally indicates that Trump’s tariff policy shift was interpreted as a positive signal by the market.
📌 Background of President Trump’s Tariff Suspension
President Trump cited recent financial market instability and a surge in U.S. Treasury yields as key reasons for the tariff suspension. At the time of the announcement, he stated, “It’s time to show flexibility,” acknowledging market unrest and seemingly aiming to ease investor concerns through the adjustment.
This measure also appears to reflect an attempt to temporarily ease the economic strain caused by slowing global growth and the trade war. However, critics argue that such measures are no more than short-term fixes.
🚩 Controversies and Criticisms Surrounding Trump’s Tariff Suspension
While President Trump’s decision brought about positive effects, it also provoked widespread political and economic criticism.
1. Market Manipulation and Insider Trading Allegations
Just before the announcement, President Trump posted on his social media that “now is a good time to buy,” explicitly referencing the stock ticker of Trump Media & Technology Group (DJT), in which he is a major shareholder. Following this, DJT’s stock price surged by over 21%. The Democratic Party harshly criticized this as “the largest market manipulation in history” and pointed to potential securities law violations and insider trading.
2. Decline in U.S. Global Credibility
New York Times columnist Thomas Friedman argued that this decision significantly undermined U.S. global credibility. He expressed concern that Trump’s policy incited conflict rather than cooperation with allies and signaled that the U.S. had caved to pressure in the trade war with China. As a result, there is a growing concern that allies may distrust the U.S. due to its inconsistent policies.
3. Increased Economic Uncertainty from Policy Inconsistency
Economists highlighted the inconsistency of Trump’s tariff policy and warned that continuous changes and suspensions could trap the global economy in a cycle of uncertainty. This confusion could lead to delayed corporate investments and a drop in consumer confidence, ultimately hindering long-term economic growth.
4. Rising Political Concerns within the Republican Party
Concerns are growing within the Republican Party as well. During a Senate Finance Committee hearing, some lawmakers warned that continued trade conflict could lead to high inflation and slow growth. They also questioned who would take responsibility if the policy failed.
5. Negative Impact on Global Economic Order
The decision is also seen as disrupting the free trade–centered global economic order and strengthening protectionism. Critics warn that this could mirror the economic chaos caused by protectionism during the Great Depression of the 1930s.
🔍 Conclusion and Outlook
President Trump’s tariff suspension temporarily stabilized financial markets and improved investor sentiment. However, it also triggered serious political and economic controversies. Key criticisms include insider trading allegations, diminished global trust, and a lack of policy consistency.
Depending on how the Trump administration’s trade policy unfolds, the global economy and international relations could face major changes. It is essential to continue monitoring these developments closely.
What are your thoughts on the recent tariff suspension policy? Share your opinion in the comments below! 😊
