Weekend Read: Trump’s 90-Day Tariff Pause
04/16/2025Weekend Read: Trump’s 90-Day Tariff Pause, a Negotiating Tactic and a Timely Reminder
I take pride in personally crafting each of these emails. Unlike many others in the industry who rely on prewritten content, I write these myself from scratch. My goal is to boil down complex concepts and share relevant news in an easy-to-understand format. I hope you find them both informative and enjoyable.
Wednesday’s announcement by President Trump provided some much-needed clarity and relief to a market that’s been wrestling with uncertainty over tariffs. He announced a 90-day pause on his proposed reciprocal tariff with some exceptions.
Let’s break down exactly what he said, why it sparked such a notable market rally, and what it means for you as an investor.
Trump’s Announcement: A 90-Day Pause
Trump reciprocal tariffs announced on “Liberation Day” Wednesday April 9th implemented a minimum 10% tariff on all imported goods, regardless of trading partner. Additionally, the U.S. imposed tariffs equal to roughly 50% of what other countries charge on American exports1. This caused the markets to react very poorly.
Earlier this week, on Monday, markets were whipsawed by a rumor that the White House was considering a 90-day pause on the proposed tariffs. Stocks surged higher on the initial headlines, only to tumble sharply after the White House came out and vehemently denied the report. The false rumor sparked some of the most dramatic intraday swings I’ve ever see, underscoring just how reactive markets are at the moment2.
On Wednesday, in a very unexpected turn of events, Trump did exactly what the White House had denied earlier in the week, a 90 day pause on the reciprocal tariff policy. Specifically, he paused the "reciprocal tariffs," but kept a minimum 10% tariff in place on all imported goods during the pause. Tariffs on Chinese imports were increased sharply to 125%, escalating trade conflict with them, while the existing 25% tariff on imported automobiles was left unchanged. The European Union responded by suspending its own planned retaliatory tariffs for 90 days, opening a potential window for broader negotiations3.
Why the Market Rallied Sharply
Markets surged on the news, with the S&P 500 jumping 9.5% (FactSet). This jump is 3rd largest single day gains since WW24.
Markets crave clarity, and Trump's announcement delivered just that. To me, it confirmed that he's more focused on negotiating better trade deals than dragging us into a prolonged trade war. I’ll be honest, one of my bigger concerns lately has been the potential damage extended tariffs could do to the markets. So, when I heard Trump explain that so many countries had called the White House to open negotiations,and that he was willing to hit pause for 90 days to give talks a real chance, it was reassuring. It showed me he’s serious about finding solutions, not just escalating tensions.
The "Rubber Band" Effect in Action
The sharp rally yesterday was a textbook example of what I like to call the "rubber band" effect. For weeks, all the uncertainty and fear around tariffs kept stretching investor sentiment tighter and tighter, pulling markets lower. Then, with just one announcement, that tension snapped, and the market came roaring back. Now sure we’re not back to where we were before Tariff talks began, but that was quite the day.
It’s a real reminder of just how tightly things had been wound. It also shows why trying to react to every headline or market swing often does more harm than good. Investors who moved to the sidelines when things looked the worst missed the bounce entirely, and it’s moments like these that really drive home why staying disciplined and keeping perspective matters so much.
Staying Invested for Long-Term Goals
The recent volatility, followed by the strong relief rally, serves as an important reminder: short-term market swings, whether driven by tariffs, geopolitical tensions, or other headline news, rarely impact the trajectory of long-term financial plans. Staying invested through uncertainty, rather than trying to time market moves, continues to be the most reliable path toward achieving long-term goals.
Markets will inevitably face more periods of uncertainty in the days ahead, but hopefully you can see my perspective.
If you’ve only recently joined my email list, you’ve missed out on many insights and updates that I've been sharing each week. Be sure to visit my blog to explore past content that you might find valuable.
And as always, please don’t hesitate to reach out by phone or email if you have any questions or concerns.
Enjoy your weekend,
Jeremy Raffer, MBA
Director & Wealth Manager
Author “Financial Planning for Widows”
m. 201-747-2705
w. rafferwealthmanagement.com
e. [email protected]
Steward Partners
115 W. Century Rd, Suite 145
Paramus, NJ 07652
1 https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/
2 https://www.cnn.com/2025/04/07/media/fake-news-x-post-caused-market-whiplash/index.html#:~:text=The%20problem%3A%20It%20wasn't,around%208%3A30%20a.m.%20ET.
3 https://www.bbc.com/news/articles/c5y66qe404po
4 https://www.cnbc.com/2025/04/09/stock-market-posts-third-biggest-gain-in-post-wwii-history-on-trumps-tariff-about-face.html
The views expressed herein are those of the author and do not necessarily reflect the views of Steward Partners or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results.
Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results.
The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities market. The index includes a representative sample of 500 leading companies in leading industries of the U.S. economy. The S&P 500 Index focuses on the large-cap segment of the market; however, since it includes a significant portion of the total value of the market, it also represents the market.
AdTrax 7844731.1 Exp 7/26
I take pride in personally crafting each of these emails. Unlike many others in the industry who rely on prewritten content, I write these myself from scratch. My goal is to boil down complex concepts and share relevant news in an easy-to-understand format. I hope you find them both informative and enjoyable.
Wednesday’s announcement by President Trump provided some much-needed clarity and relief to a market that’s been wrestling with uncertainty over tariffs. He announced a 90-day pause on his proposed reciprocal tariff with some exceptions.
Let’s break down exactly what he said, why it sparked such a notable market rally, and what it means for you as an investor.
Trump’s Announcement: A 90-Day Pause
Trump reciprocal tariffs announced on “Liberation Day” Wednesday April 9th implemented a minimum 10% tariff on all imported goods, regardless of trading partner. Additionally, the U.S. imposed tariffs equal to roughly 50% of what other countries charge on American exports1. This caused the markets to react very poorly.
Earlier this week, on Monday, markets were whipsawed by a rumor that the White House was considering a 90-day pause on the proposed tariffs. Stocks surged higher on the initial headlines, only to tumble sharply after the White House came out and vehemently denied the report. The false rumor sparked some of the most dramatic intraday swings I’ve ever see, underscoring just how reactive markets are at the moment2.
On Wednesday, in a very unexpected turn of events, Trump did exactly what the White House had denied earlier in the week, a 90 day pause on the reciprocal tariff policy. Specifically, he paused the "reciprocal tariffs," but kept a minimum 10% tariff in place on all imported goods during the pause. Tariffs on Chinese imports were increased sharply to 125%, escalating trade conflict with them, while the existing 25% tariff on imported automobiles was left unchanged. The European Union responded by suspending its own planned retaliatory tariffs for 90 days, opening a potential window for broader negotiations3.
Why the Market Rallied Sharply
Markets surged on the news, with the S&P 500 jumping 9.5% (FactSet). This jump is 3rd largest single day gains since WW24.
Markets crave clarity, and Trump's announcement delivered just that. To me, it confirmed that he's more focused on negotiating better trade deals than dragging us into a prolonged trade war. I’ll be honest, one of my bigger concerns lately has been the potential damage extended tariffs could do to the markets. So, when I heard Trump explain that so many countries had called the White House to open negotiations,and that he was willing to hit pause for 90 days to give talks a real chance, it was reassuring. It showed me he’s serious about finding solutions, not just escalating tensions.
The "Rubber Band" Effect in Action
The sharp rally yesterday was a textbook example of what I like to call the "rubber band" effect. For weeks, all the uncertainty and fear around tariffs kept stretching investor sentiment tighter and tighter, pulling markets lower. Then, with just one announcement, that tension snapped, and the market came roaring back. Now sure we’re not back to where we were before Tariff talks began, but that was quite the day.
It’s a real reminder of just how tightly things had been wound. It also shows why trying to react to every headline or market swing often does more harm than good. Investors who moved to the sidelines when things looked the worst missed the bounce entirely, and it’s moments like these that really drive home why staying disciplined and keeping perspective matters so much.
Staying Invested for Long-Term Goals
The recent volatility, followed by the strong relief rally, serves as an important reminder: short-term market swings, whether driven by tariffs, geopolitical tensions, or other headline news, rarely impact the trajectory of long-term financial plans. Staying invested through uncertainty, rather than trying to time market moves, continues to be the most reliable path toward achieving long-term goals.
Markets will inevitably face more periods of uncertainty in the days ahead, but hopefully you can see my perspective.
If you’ve only recently joined my email list, you’ve missed out on many insights and updates that I've been sharing each week. Be sure to visit my blog to explore past content that you might find valuable.
And as always, please don’t hesitate to reach out by phone or email if you have any questions or concerns.
Enjoy your weekend,
Jeremy Raffer, MBA
Director & Wealth Manager
Author “Financial Planning for Widows”
m. 201-747-2705
w. rafferwealthmanagement.com
e. [email protected]
Steward Partners
115 W. Century Rd, Suite 145
Paramus, NJ 07652
1 https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/
2 https://www.cnn.com/2025/04/07/media/fake-news-x-post-caused-market-whiplash/index.html#:~:text=The%20problem%3A%20It%20wasn't,around%208%3A30%20a.m.%20ET.
3 https://www.bbc.com/news/articles/c5y66qe404po
4 https://www.cnbc.com/2025/04/09/stock-market-posts-third-biggest-gain-in-post-wwii-history-on-trumps-tariff-about-face.html
The views expressed herein are those of the author and do not necessarily reflect the views of Steward Partners or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results.
Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results.
The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities market. The index includes a representative sample of 500 leading companies in leading industries of the U.S. economy. The S&P 500 Index focuses on the large-cap segment of the market; however, since it includes a significant portion of the total value of the market, it also represents the market.
AdTrax 7844731.1 Exp 7/26