The recent decision by US President Donald Trump to pause tariffs for 90 days has significantly impacted economic forecasts and financial markets.
Suspension of Tariffs
On April 9, 2025, Donald Trump announced a 90-day halt on tariffs of at least 10% on most US imports, notably excluding China. This decision had an immediate impact on economic forecasts.
Market Impact
The presidential announcement triggered a sharp rise in financial markets. The Nasdaq 100 and S&P 500 nearly touched a 10% intraday peak, significantly erasing losses from the previous week. The cryptocurrency market also reacted positively, with Bitcoin surging by 4.6% to $81,300.
Expert Opinions
Some experts, like Justin Wolfers, an economics professor at the University of Michigan, urge caution, stating that recession risks remain 'very high' because 'the president has already caused a lot of damage and is only offering a partial solution.'
Nevertheless, the temporary pause in the trade war provides a welcome respite for the US economy and global markets, although uncertainties regarding trade relations, particularly with China, persist.
