Trump Tariff Pause Shakes Markets: Recovery, Recession Reversal, and Strategic Chess with China
Trumps Strategy: Somebody Had to Do It
Trump didn't mince words in a series of public statements following the announcement. He asserted:
No other President would have done what I did Somebody had to do it. It had to stop because its not sustainable.
He highlighted that China made over $1 trillion in trade gains last year from the U.S., claiming his administration has now reversed it. Trumps narrative is clear: the tariff escalation was a long-overdue correction to a broken trade dynamic.
China Wants to Make a Deal
Just hours after the tariff pause announcement, Trump claimed:
China wants to make a deal. Theyre in the process of figuring it out.
This suggests that the 125% tariff on Chinese goods may be a pressure tactic aimed at forcing Beijing to the negotiation table. Treasury Secretary Bessent reinforced this by saying this was Trumps strategy all alongto goad China into a weakened position. She also confirmed the timing was deliberate and not a response to market panic.
Trumps Tariff Pause: A Strategic Pivot that Rattled and Rallied Markets
On April 9, 2025, President Donald Trump shocked global markets by authorizing a 90-day pause on tariffs for most countries, excluding China, which now faces a steep 125% tariff hike. While the move initially sparked confusion and volatility, it has since been hailed by his allies as a calculated maneuverand even prompted Goldman Sachs to walk back its recession forecast.
Lets explore what led to this turnaround and how key voices are framing the impact.
From Market Shock to Optimism: Goldman Sachs Reverses Recession Call
One of the most immediate effects of Trump's announcement was the sharp market rally. The S&P 500 jumped over 8%, while the Nasdaq gained more than 10%signaling renewed investor confidence.
In a surprising development, Goldman Sachs officially rescinded its recession prediction, attributing the shift to the clarity and potential global de-escalation offered by the tariff pause. This marked a pivotal moment in Wall Street sentiment, flipping bearish expectations into cautious optimism.
Vindication from Political Allies and Crypto Leaders
Crypto investor and "Crypto Czar" David Sacks added fuel to the narrative by accusing critics of rooting for Trumps failureeven if it meant a market crash:
Fortunately their hopes have been dashed. Trump has been vindicated.
This echoes a broader sentiment across pro-Trump circles: that the market rebound and Goldmans reversal prove the administrations approach is not just working, but strategically sound.
Whats Next? More Volatility or Sustained Recovery?
While the market welcomed the pause, the road ahead remains uncertain. The 125% tariff on Chinese goods is still in place, and Chinas retaliation via WTO complaints and increased tariffs could reignite tensions.
Yet, if China comes to the negotiation table and broader trade relations improve, this move may mark a turning point for both Trumps legacy and global economic stability.
Trumps 90-day tariff pause wasnt just a policy decisionit was a market-moving, recession-reversing power play. With political allies and market analysts shifting their tone, and China reportedly figuring it out, the next few weeks could determine whether this rebound sustainsor if volatility rears its head once more.
Read more: https://cryptoticker.io/en/trump-tariff-pause-china-deal-market-impact-2025/
Text source: CryptoTicker
