Trump’s Tariff Pause Triggers Market Surge, but Economists Warn of Risks Ahead
Markets Surge After Trump Freezes Tariff Plan for 90 Days Amid Breakthrough in China Talks
WASHINGTON, June 11, 2025 – In a surprising move, President Donald Trump has announced a 90-day suspension of his planned global tariffs, sparking a massive rally on Wall Street. The S&P 500 soared by 9.5%, its largest single-day jump in recent years, while the Dow Jones and Nasdaq also posted major gains.
The announcement came shortly after successful discussions between U.S. and Chinese officials in London, where both sides agreed on a new “trade cooperation framework” aimed at reducing economic tensions. The pause in tariffs applies to a wide range of proposed duties on imported goods and has brought instant relief to investors and businesses fearing a worsening trade war.
Sectors like technology, retail, and manufacturing, which were previously struggling due to uncertainty around tariffs, saw significant gains as confidence returned to the market.
However, experts warn that the relief might be temporary. “It’s a positive step, but three months is not enough to resolve years of trade disagreements,” said Dr. Laura Chen, a trade expert at the Peterson Institute. Concerns remain over global supply chains, inflation risks, and unresolved issues like technology transfer rules and trade deficits.
Financial analysts are also watching closely. “Investors are optimistic for now, but if talks fall apart, we could see volatility return,” said James Hargrove of Goldman Sachs. While the trade agreement shows progress, it lacks clear details, and upcoming negotiations could prove difficult.
Although uncertainty remains, Trump’s move has brought short-term stability to the financial markets. The coming 90 days will be crucial—either paving the way for a lasting trade deal or reigniting global economic tensions if talks collapse.
