US stocks fell for the second consecutive day on Thursday after President Donald Trump announced a 90-day pause on his tariff plan. The decision came as a surprise to many, following a historic rally on Wednesday when Trump announced a blanket 10% tariff on goods entering the US from most countries.
The Dow Jones Industrial Average plummeted by 2.5%, while the Nasdaq Composite fell by more than 4%. The S&P 500 also dropped by 3.4%.
Trump attributed the market volatility to “transition problems” and said that the economic situation was “very good”. However, his statement did little to calm investors, who are still reeling from the surprise announcement.
Democrats have criticized Trump’s decision as a “game to play with the economy”, while Republicans praise it as a masterstroke of diplomacy. Industry leaders have expressed concerns about the impact of the tariffs on consumers and businesses.
Amazon CEO Andy Jassy warned that third-party sellers may pass on the costs of the tariffs to customers, while KPMG’s chief economist Diane Swonk said that the effective tariff rate has actually increased during the pause.
The controversy surrounding Trump’s decision has sparked accusations of possible market manipulation. Some lawmakers have called for transparency and disclosure from members of Congress who purchased stocks over the last two days.
As the situation continues to unfold, one thing is clear: Trump’s tariffs pause has sent shockwaves through the markets, leaving investors and policymakers scrambling to make sense of the latest developments.
Source: https://www.theguardian.com/us-news/2025/apr/10/trump-tariffs-reaction-republicans-democrats