Back and Forth: President Trump has announced a 90-day pause on new tariffs against all countries except China, just a week after what experts called a “nuclear bomb” on global trade. Global reciprocal tariffs have been reduced to 10%, while anti-China taxes have surged to a historic 125%.
The decision marks a sharp reversal from the steep tariffs the President announced on April 2, which included significant duties on imports from countries such as Japan (24%), Vietnam (46%), and Cambodia (49%).
Last week’s announcement sent markets into disarray: Nintendo delayed pre-orders for the recently announced Switch 2, customers rushed to Apple Stores fearing imminent price hikes, two laptop manufacturers paused US shipments, and Micron raised SSD prices, just to name a few.
Alright, I think people knew of the tariff pause and traded it beforehand. You can see before Trump posted “buy” on Truth Social, traders opened $QQQ $TQQQ and $SPY calls RIGHT BEFORE THE NEWS, someone opened $SPY 509 calls, expiring TODAY!!!!!!!!!!!!!!!!!!!! Those calls are up 2100% in one hour.
– Unusual Whales (@unusualwhales.bsky.social) April 9, 2025 at 2:21 PM
In a post on Truth Social, Trump claimed that the US has begun new trade negotiations with over 75 countries, framing the pause as a successful intimidation tactic. However, billionaire Elon Musk and members of the President’s own party have criticized the tariffs, which far exceeded expectations.
Some analysts are now questioning whether market activity surrounding the announcement points to deliberate stock manipulation.
White House Press Secretary Karoline Leavitt confirmed that the current universal reciprocal tariff rate stands at 10%. However, The Washington Post noted that the total tariffs on Mexico and Canada remain unclear, possibly ranging between 10% and 35%. Trump appears to have stepped back from a full-blown global trade war just hours after the April 2 tariffs went into effect – but tensions with China are intensifying. The economic fallout could significantly impact prices and the availability of many goods.
To recap: on April 2, the President raised anti-China tariffs to 54%, and later increased them to 104%. In response, China imposed an 84% tariff on US imports and began restricting exports of rare earth metals – a move that eerily mirrors the plot of Call of Duty: Black Ops II, which was released in 2012 and set in the year 2025. The White House then retaliated with the latest increase to 125%.
TL;DR: The new U.S. tariff rate against our two largest trading partners is either 10%, 25% or 35%, and so far no one I’ve reached out to at the White House is able to tell me which.
– Megan Cassella (@megancnbc.bsky.social) April 9, 2025 at 2:38 PM
The pause on most tariffs for countries like Vietnam and Cambodia will likely bring relief to companies such as Nintendo, which had already begun shifting manufacturing away from China. However, divesting from the country is difficult.
A recent Bloomberg report highlights that products like laptops, smartphones, batteries, and other small appliances are still heavily dependent on Chinese imports. Even when devices aren’t assembled in China, they rely on supply chains that run through China and many other countries.
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