Sharp Rise in the US Stock Market After Trump’s Tariff Decision
The main indicators of the US stock market showed significant growth after President Donald Trump announced a 90-day postponement of tariff increases. The Dow Jones index rose nearly 8%, the S&P 500 climbed by 9.5%, and the Nasdaq increased by approximately 12%.
This is reported by AgroReview
Commodity prices, particularly oil, also showed positive dynamics. The price of the benchmark Brent crude oil reached $66 per barrel, while earlier on April 9, the price had fallen below $60. The Russian Urals grade is trading around $59 per barrel, after its price had dropped to $53 during the day.
Goldman Sachs Cancels Recession Forecast
The investment bank Goldman Sachs canceled its recession forecast for the US just an hour after announcing it.
“This morning, prior to President Trump’s announcement, we shifted to a baseline recession scenario in response to additional tariffs for certain countries that took effect this morning. Now we have returned to our previous baseline forecast, no recession,” the market analysts stated.
Trump’s Next Steps and China’s Reaction
On the evening of April 9, Trump announced an increase in tariffs on goods from China from 104% to 125%. He explained his decision by citing “the disrespect China shows towards global markets.” The US President noted that over 75 countries had approached the United States to discuss tariffs, prompting him to postpone the implementation of additional tariffs for 90 days. During this time, a tariff rate of 10% will apply. Trump did not specify which countries were involved.
China, in turn, announced an increase in tariffs on imports from the US to 84%, emphasizing the need to protect its national economic interests amid the trade escalation. This decision was a response to the recent increase in tariffs to 104% on Chinese goods imposed by the US President.
Recall that on April 2, Trump announced the introduction of tariffs on imports of goods from around the world to the United States. The baseline tariff rate on imports will be 10% for many countries, including the UK, Brazil, Australia, Turkey, and Ukraine. A rate of 20% was planned for EU countries, 34% for China, 25% for South Korea, 24% for Japan, and 26% for India. Record rates will apply to Cambodia (49%), Vietnam (46%), and Sri Lanka (44%).