The announcement of US President Donald Trump’s ban on tariff for 90 days brought a major change in the global stock markets. After this announcement, American, Japanese and Indian stock markets saw a tremendous jump. Especially, the US stock market recorded the largest one day after 2008. The move brought huge benefits to investors and earned a profit of about Rs 7 lakh crore.
This decision was taken aimed at reducing business stress and providing stability to the global economy. However, China is excluded from this ban and 125% tariffs have been implemented on it. Let’s understand in detail how this decision affects global markets and investors.
Impact of Trump Tariff Stagnation on the stock market
| Duration | Description |
| Declaration date | 9 April, 2025 |
| Tariff stagnation period | 90 days |
| Countries include | All except China |
| China tariff rate | Growed up to 125% |
| Global stock market growth | Dow Jones +8%, S&P 500 +9%, Nasdaq +12% |
| Indian market influence | Sensex-NIFTY is expected to grow |
| Investor profit | ₹ 7 lakh crore |
Ban on tariff: What does it mean?
Tariff is a duty imposed on goods imported by a country. Trump had earlier imposed high tariffs on several countries, increasing trading tension. Now he has banned tariffs for 90 days, which has given relief to most countries.
However, China is excluded from this ban and has been increased to 125% of the import duty on it. Trump says that this decision has been taken to establish a better trading relationship with countries that did not take any vengeance against the US.
Global stock market response
After Trump’s announcement, there was a tremendous jump in the global stock markets:
- Dow Jones: 8% increase
- S&P 500: 9% rose (largest one day increase since 2008)
- Nasdaq: 12% jump
This growth proved to be a booster dose for investors. The Indian stock market can also experience this positive impact, as the Sensex and Nifty are expected to have a big rapid rise.
Impact on Indian stock market
The Indian stock market may also benefit from this announcement. The Indian market was closed on Thursday due to Mahavir Jayanti, but on Friday, the Sensex and Nifty could see a bumper bounce. Experts believe that this boom will prove to be profitable for investors.
How did investors earn ₹ 7 lakh crore?
Trump’s announcement made investors a huge advantage. The rise in the stock markets made a profit of about ₹ 7 lakh crore in total. This profit was mainly due to the following reasons:
- Ban on tariffs: The market caused stability due to reduced business stress.
- High tariff on China: Other countries benefited from increasing the duty on imported goods from China.
- Bond market stability: Investors increased confidence due to a decline in the US bond market.
Why was Trump’s decision important?
Trump took this decision due to many economic and political pressures:
- Market instability: The US stock market was declining drastically due to high tariff policy.
- Bond market crisis: The US bond market was getting fast selling, causing the government to worry.
- Global trade stress: Global economy was being affected by the possibility of trade war.
Future challenges
Although this decision is making a positive impact, some challenges still remain:
- Status of 90 days later: Investors are worried about what will happen after this restriction is over.
- China-US trade tension: High tariffs imposed on China may increase tension between the two countries.
- Global Economic Uncertainty: Changes in business policies can affect the global economy.
Disclaimer: What is reality?
This news is real and the impact of change in tariff policy declared by Trump can be clearly seen on the stock markets. However, investors should be cautious as changes in policies are possible in future.
The purpose of this article was to provide you information about the tariff policy and its effects declared by Trump. Hope this information will prove useful for you!
