US markets see sharp drop despite Donald Trump' 90-day tariff pause

The stocks gave back much of their historic gains from the day before as Wall Street weighed a trade war that has cooled in temperature but is still threatening

Updated on: Apr 11, 2025, 04:42:33 IST

By HT News Desk

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The US stock markets fell again on Thursday after gaining big on President Donald Trump's reprieve on tariffs to most countries on Wednesday, April 9.

The US stock markets are down again. (REUTERS)

The stocks gave back much of their historic gains from the day before as Wall Street weighed a trade war that has cooled in temperature but is still threatening the economy.

The S&P 500 fell 5.8 per cent, while the Dow Jones Industrial Average dropped 1,746 points. The Nasdaq composite sank 5.8 per cent by midday.

The positive inflation report also did little to cheer up the market as the gloom of the tariff war remained. Losses for stocks accelerated after the White House clarified that Chinese imports will be tariffed at 145 per cent, and not the 125 per cent rate that Trump had earlier written about, the Associated Press reported.

Markets are especially wary of the inflation report as it offers a picture of the past, and the situation could still worsen due to the effects of the tariffs.

Donald Trump’s tariffs paused for 90 days, but still on for China

Donald Trump on Wednesday announced that he was pausing the sweeping tariff measures he announced on April 2 for most countries for a period of 90 days. The only country that did not get any reprieve was China and its territories of Hong Kong and Macau.

The Republican raised the tariffs announced on China to 125 per cent on Wednesday. On Thursday, however, the White House clarified that the total tariff on China would stand at 145 per cent as the 20 per cent tariffs due to fentanyl are also to be included.

Beijing shot back at the US with 84 percent tariffs on US goods. China also said that it wouldn't sit back, although it added that it was ready for talks. China also announced restrictions on Hollywood imports as a way to retaliate, although experts believe that the measure would have a minimal impact on the US.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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