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Washington D.C., April 7, 2025 — Global markets were roiled on Monday following media reports that U.S. President Donald Trump was considering a temporary 90-day suspension of tariffs on all countries except China. The unconfirmed reports caused an immediate stir in global financial markets, giving U.S. stocks a short-lived boost before the White House issued a sharp denial.
According to CNBC, the White House called the media reports “false” and “fake news,” firmly rejecting the notion that any such tariff pause was under consideration. However, by then, the damage had been done. Investors around the world had already begun to react, causing volatile swings across multiple sectors.
Global Stocks See Sharp Reversals
The initial report of a possible tariff reprieve triggered an optimistic rally on Wall Street, with the Dow Jones Industrial Average, NASDAQ, and S&P 500 all rebounding briefly from morning losses. But the gains evaporated within hours.
- Dow Jones: Up nearly 200 points at one stage, before closing 90 points lower.
- NASDAQ Composite: Reversed early gains to finish 0.8% in the red.
- S&P 500: Lost 0.7% on the day, after climbing nearly 0.5% earlier.
International markets fared worse:
- FTSE 100 (UK): Dropped 1.6%
- DAX (Germany): Fell 2.1%
- Nikkei 225 (Japan): Ended 2.4% down
- Hang Seng (Hong Kong): Plunged 2.9%
Oil Prices Crash Amid Economic Uncertainty
Oil markets also felt the ripple effect. Concerns that global tariffs could depress energy demand caused Brent crude to fall over 4%, dipping below $80 per barrel, while WTI crude also lost 3.8% in intraday trading.
Analysts cited fears of a cascading global slowdown, triggered by rising costs on imports and reduced trade volume. The tariff uncertainty has left oil traders jittery, and Monday’s developments only amplified their concerns.
The Report: What Was Alleged?
Multiple media outlets, citing unnamed sources, reported early Monday that President Trump had instructed aides to explore a 90-day suspension of tariffs on all nations except China as part of a broader re-evaluation of the trade strategy.
While no official draft or executive order was mentioned, market watchers interpreted the leak as a potential signal that the White House was looking to ease tensions amid mounting pressure from business leaders and foreign allies.
White House Responds: “Fake News”
Shortly after markets responded to the speculation, the White House Press Office issued a formal denial. According to a CNBC live update, the administration called the claims “categorically false,” adding:
Wrong. Fake News. https://t.co/XOLyli5AOS
— Rapid Response 47 (@RapidResponse47) April 7, 2025
“There is no 90-day tariff pause under consideration for any country at this time, and any reporting to the contrary is fabricated.”
The strong wording led to sharp reversals across equity and commodity markets within the hour.
Trump’s Stance on Tariffs: “Like Medicine to Fix Something”
Over the weekend, President Trump had doubled down on his trade policies, comparing tariffs to “medicine” — bitter but necessary for economic recovery. At a rally in Ohio, he said:
“Other governments will have to pay a lot of money if they want these tariffs to go away. It’s the only way we get a fair deal.”
His comments suggest an uncompromising stance, especially with China, whose exports have been a long-time target of Trump’s trade war.
Asian and European Markets Spooked
The reaction in Asian and European markets on Monday was swift and severe. Investors were rattled not only by the conflicting signals from Washington but also by fears of a broader global economic disruption.
Economists have warned that prolonged tariff regimes can cause:
- Higher prices for consumers
- Supply chain disruptions
- Slower export growth
- Decrease in investor confidence
Monday’s sell-off appeared to reflect a culmination of those fears.
Expert Reactions Across the Globe
Michael Hewson, Chief Market Analyst at CMC Markets, said:
“Markets hate uncertainty, and Monday was a masterclass in mixed signals. One moment investors are pricing in relief, and the next they’re bracing for a recession.”
Dr. Mei-Ling Zhou, economist at the University of Hong Kong, added:
“The volatility indicates deep skepticism about the U.S. administration’s direction. Even unconfirmed reports can move trillions — and that’s dangerous.”
International Trade Groups Urge Clarity
The World Trade Organization (WTO) and the International Chamber of Commerce (ICC) both issued statements urging the U.S. government to clarify its trade intentions and avoid policies that could trigger global instability.
A WTO spokesperson commented:
“Rapid policy shifts or perceived inconsistencies in trade decisions from major economies like the U.S. can have destabilizing effects globally.”
Context: Trump’s Tariff Legacy
Since taking office, President Trump has imposed tariffs on hundreds of billions of dollars’ worth of imports — targeting steel, aluminum, autos, and especially Chinese goods. These policies were framed as a tool to rebalance U.S. trade deficits and protect domestic industries.
However, they have also drawn criticism from:
- American business lobbies, who warn of rising input costs
- Farmers, hit by retaliatory tariffs
- Foreign governments, many of whom have threatened countermeasures
Despite those challenges, Trump has largely remained steadfast, describing the trade war as a necessary course correction.
Political Implications and Election Fallout
With the U.S. presidential election on the horizon, the tariff policy remains a hot-button issue. Critics argue that Trump’s protectionist stance could backfire economically and politically, especially if it continues to rattle markets and weigh down consumer sentiment.
Democratic frontrunner Senator Rebecca Hale tweeted:
“This administration’s flip-flopping on trade is destroying American credibility and hurting working families. Enough of the chaos.”
Looking Ahead: More Volatility Expected
Market analysts forecast continued instability in the coming days as investors await official statements or possible policy shifts from the White House. Until clarity emerges, traders are expected to remain cautious and reactive.
Key dates to watch:
- Next Federal Reserve meeting: Investors will look for any reference to tariffs in rate discussions.
- G7 Finance Ministers Meeting: Tariffs expected to dominate the agenda.
- Upcoming U.S.-China trade talks: Scheduled in Geneva next month.
A Dangerous Game of Speculation
The brief storm caused by the alleged Trump 90-day tariff pause underscores just how reactive global markets have become to even whispers of policy change in Washington. With no official pause in place, the White House’s swift denial has left investors jittery and markets in limbo.
For now, one thing is clear: tariff uncertainty is a powerful market disruptor — and in today’s hyper-connected financial world, speculation alone can unleash global chaos.
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