World News and the Stock Markets all over the world have been seeing turbulent times, with fake news and rumors going around everywhere and the Stock market seeing swings that were unknown to the Investors and traders who recently started tracking the Markets.
Other than Market and News swings, the U.S government and, in particular, the President of the World’s largest Economy Mr. Donald Trump’s decisions too are turbulent with on and off decisions on Tariffs.
Recent Changes
Donald Trump recently announced that he is authorising a 90-day pause on the recently levied reciprocal tariffs across the world. However, the 10 percent baseline tariff on all imports in the United States will remain in place. This 10 percent baseline tariff is significantly lower than the earlier tariff of over 45 percent for some countries.
Furthermore, Trump raised tariffs on China, stating that “Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125 percent”.
He further said that over 75 countries have called the Representatives of the United States to negotiate on Trade, Trade barriers, Tariffs, Currency Manipulation, and Non-monetary tariffs.
Also read: HDFC bank & 3 other stocks in which FIIs decreased stake in Q4 FY25 to keep an eye on
China & USA Trade War
In February of 2025, the USA imposed a 10 percent tariff on all goods imported from China, and in retaliation, China imposed a 15 percent tariff on U.S. Coal and liquefied natural gas and a 10 percent tariff on Crude oil and agricultural machinery.
In March, the U.S. increased tariffs on China by an additional 10 percent, bringing the total to 20 percent on the affected products. In response, China imposed a 15 percent tariff on U.S. agricultural products, including chicken, wheat, corn, and cotton.
In April, on the Liberation Day, the U.S imposed a 34 percent tariff on all Chinese imports, following which China imposed a 34 percent tariff on all U.S. goods. The U.S. again raised the 34 percent tariff to 84 percent, following which China escalated the situation and imposed an 84 percent tariff on US imports. Recently, the USA has increased the 84 percent tariff to 125 percent and a warning of “Do not retaliate”.
Stock Market Reaction on Tariff Pause
Benchmark Index S&P 500 & the tech-heavy Nasdaq Composite surged 9.50 percent and 12.15 percent, respectively, with several stocks rallying over 20 percent. Small-cap Index of the US, the Russell 2000 Index, rallied close to 9 percent. Indian Markets, however, are closed, but the GIFT NIFTY is indicating a gap upstart of around 4 percent.
Stock markets have breathed a sigh of relief after the recent downfall, Trump stated that negotiations are going on, and several countries have approached the U.S government for discussion on tariffs, However, the ongoing Trade war between China and the U.S shouldn’t be ignored as both of them are key trading partners and two of the world’s most influential economies.
Written By Abhishek Das
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
