Is the Storm of Donald Trump’s Tariffs Calming Down?
Global markets are showing signs of recovery following the announcement by the US president of a 90-day pause on most tariffs, raising hopes that a broader financial crisis may be averted.
This turnaround occurred less than 24 hours after the imposition of steep new tariffs on most US trading partners, following the most intense period of financial market volatility since the early stages of the COVID-19 pandemic.
However, turbulent times may still lie ahead, with the potential reinstatement of tariffs in 90 days and ongoing tensions between the US and China.
Let’s take a closer look at how the markets have performed in recent days.
In the UK, the FTSE 100 index, which monitors the UK stock market, saw a more than 6% increase on Thursday.
UK stocks followed similar upward trends seen in European and Asian markets in recent days.
While the FTSE has recovered from its previous decline, it still remains significantly below its pre-tariff levels set by Mr. Trump.
On Wednesday, the FTSE 100 closed down by 2.92%, marking its lowest point since March 2024, over 13 months ago.
Wall Street witnessed a sharp decline in the Nasdaq index, one of the principal indicators of the US stock market, over the past few days.
Many professionals in the financial sector were left wondering if the president would maintain his stance on the controversial tariffs.
Prior to the policy reversal, the market turmoil resulted in trillions of dollars being wiped out and led to a spike in US government bond yields, a development that caught the attention of the president.
Relief followed when Mr. Trump announced the 90-day suspension of tariffs, leading to a more than 12% rise in the Nasdaq share index.
However, the index still lags behind its levels before the «Liberation Day» announcement.
In China, where tariffs were increased rather than lifted unlike other parts of the world, the Shanghai Composite saw a slight rise.
Goldman Sachs revised its projections for China’s GDP growth in 2025 to 4%, down from the previous estimate of 4.5%, attributing this adjustment to the adverse impact of tariffs.
Meanwhile, the Chinese yuan hit its lowest level against the dollar on Thursday since the global financial crisis.