US President Donald Trump announced a 90-day pause on aggressive tariff policies, which led to a significant market rebound. The S&P 500 jumped by over 9% in a matter of hours following the announcement, with Trump claiming it was the “biggest day in financial history.” However, critics argue that the policy flip-flop highlights erratic leadership and that the market rebound was more of a reaction to previous economic damage rather than a validation of Trump’s strategy.
The pause on tariffs has been welcomed by some investors, including Bill Ackman, who had previously expressed concerns about the impact of the policies. Ackman now believes that the tactic has rooted out preferred trading partners, making it easier for trade negotiations over the next 90 days.
Analysts note that while the pause may have delayed some extreme predictions about the fallout of tariff policy, it also highlights the ongoing uncertainty and lack of clarity surrounding US trade policies. George Vessey, lead FX and macro strategist at Convera, stated that “the tariff pause allows for strategic negotiations, which is good news” but warned that “the most critical factor for the global economy remains in escalation mode – this trade war is really only about the US versus China.”
The move has also sparked debate over Trump’s leadership, with some questioning his policy competence and others praising the Art of the Deal. Paul Donovan, chief economist at UBS, noted that “policy remains very (very) erratic” and that “repeated policy uncertainty will hamper investment into the US.” The ongoing trade tensions between the US and China are likely to continue for the foreseeable future, and investors will be closely watching Trump’s next move.
Source: https://fortune.com/2025/04/10/trump-market-rebound-tariffs-art-of-the-deal