Global markets in historic turmoil as China slaps 84% tariffs before Trump's unexpected 90-day pause
Wall Street experienced one of the most chaotic trading days in history as global markets whipsawed between panic and euphoria.
It started when China announced 84% retaliatory tariffs on US goods, sending markets plunging toward bear territory in early trading. Then, in a stunning reversal, President Trump announced a 90-day pause on most of his new tariffs, triggering one of the largest single-day rallies in market history.
Traders described scenes of absolute chaos on trading floors. "I've been doing this for 22 years and I've never seen anything like it," said Marcus Teller, a senior trader at Goldman Sachs. "People were literally screaming at their terminals one minute and popping champagne the next."
The Dow Jones Industrial Average swung nearly 3,000 points from its low to high point, ultimately closing up more than 2,300 points - a staggering 6.2% gain. The tech-heavy Nasdaq soared 8.5% as investors rushed back into stocks they had dumped just hours earlier.
What made the situation even more remarkable was the apparent lack of coordination within the administration itself.
US Trade Representative Jamieson Greer was literally testifying before Congress about the necessity of Trump's aggressive tariffs when the president announced the pause on Truth Social. When asked if he knew about the policy shift, Greer admitted he had just learned about it "a few minutes ago" - the same time as everyone else.
"It looks like your boss just pulled out the rug from under you and paused the tariffs," Democratic Rep. Steven Horsford told him during the hearing.
Meanwhile, Treasury Secretary Scott Bessent attempted to frame the whiplash-inducing reversal as part of a master plan, telling reporters outside the White House that it "took great courage" for Trump to make the move.
"This was driven by the president's strategy. He and I had a long talk on Sunday, and this was his strategy all along," Bessent claimed. "You might even say he goaded China into a bad position."
White House Press Secretary Karoline Leavitt was even more direct, telling reporters: "Many of you in the media clearly missed the art of the deal. You clearly failed to see what President Trump is doing here."
The exception to the pause is China, which will still face increased tariffs of 125% - up from the previously announced 60%.
While markets celebrated the apparent de-escalation, economists warned the reprieve might be temporary. Joe Brusuelas, chief economist at RSM US, cautioned that the US economy may still be headed for recession despite today's rally.
"My sense here is that the economy is still likely to fall into recession, given the level of simultaneous shocks that it's absorbed," Brusuelas told CNN. "All this does is postpone temporarily what will likely be a series of punitive import taxes put on US trade allies."
For millions of Americans with retirement accounts and investments, today's market gyrations represented a stomach-churning example of how quickly their financial security can shift based on a single social media post.
With the 90-day clock now ticking, all eyes turn to negotiations between the US and its trading partners, with the Treasury Secretary promising that Trump would be "personally involved" in all discussions.
"No one creates leverage for himself like President Trump," Bessent said.
