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Date Published: 10/04/2025

World markets surge again as Trump announces 90-day tariff truce

A surprise backpedal from the White House has allowed global stocks to rally, though China faces harsher penalties

Global markets rebounded dramatically this Thursday April 10 following US President Donald Trump’s unexpected decision to suspend the rollout of new tariffs on European Union products for 90 days. The announcement, made late on Wednesday, included a temporary reduction of global tariffs to 10%, offering much-needed relief to jittery investors.

At the same time, however, the White House doubled down on its economic confrontation with China, raising tariffs on Chinese goods to a punishing 125%.

The partial truce sparked euphoria on stock exchanges across Europe and the United States. Spain’s Ibex 35 index jumped by 6% by mid-session, having climbed by over 8% earlier in the day, after dramatic and worrying falls earlier in the week.

The FTSE 100 in London surged 4.7%, while Frankfurt’s DAX and Paris’s CAC 40 both gained more than 6.4%. Italy’s FTSE MIB also climbed over 6%, mirroring the bullish mood that swept across the Atlantic after the Nasdaq posted its biggest one-day gain since 2001 – up 12.16%.

Speaking on Truth Social, Trump said the move came after more than 75 countries contacted his administration in hopes of negotiating tariff exemptions or reductions. “These countries are calling us. They’re kissing my ass. They’re dying for a deal,” the president wrote in typically brash style.

He described the truce as a chance for talks, but made clear that China was being excluded due to its retaliatory measures, which he labelled “disrespectful”.

European Commission president Ursula von der Leyen welcomed the pause, calling it an “important step towards stabilising the global economy”. She also floated the idea of a “zero-for-zero” tariff agreement with the United States, in a move that could pave the way for a broader rethinking of transatlantic trade policy.

“We hope to achieve frictionless trade,” she said.

Spanish President Pedro Sánchez also applauded the truce, calling it “a door to negotiation and agreement between countries”.

Speaking from Vietnam during his Asia tour, Sánchez reiterated his support for open markets and global cooperation. He refrained from directly addressing criticism from US Treasury Secretary Scott Bessent, who on Wednesday condemned Spain’s outreach to China, saying it was “like cutting your own throat”.

Sánchez maintained his stance, arguing that the tariffs introduced by the Trump administration were “unfair and unjustified”, particularly citing the “chilling” proposed rate of 46% on Vietnamese products. “We defend an open-door world, where trade connects people, not divides them,” he said at a Spanish-Vietnamese business forum.

Spain’s economic leadership is hoping that the 90-day reprieve will provide time to strengthen alternative trade routes, especially in Asia, while keeping dialogue open with Washington. During his visit, Sánchez announced €305 million in loans to support Spanish businesses expanding into Vietnam, underscoring the government’s broader diversification strategy.

We’re not out of the woods yet

Despite the market’s initial rally, analysts caution that the situation remains fragile. “Confidence remains shaken,” Bankinter said in a note to clients. “Visibility on the tariff outcome is limited, and geo-strategic risks remain high. Earnings season will be critical in gauging the real mood of investors.”

China’s exclusion from the truce introduces a new layer of unpredictability. The decision to escalate tariffs on Chinese products to 125% could prompt further retaliation from Beijing, intensifying fears of a bifurcated global trading system.

For now, though, investors are seizing the opportunity to recover some of the losses suffered during the past week’s market turmoil. Whether this rebound will last depends heavily on the direction of upcoming negotiations and whether the 90-day pause leads to meaningful progress or simply delays the next round of economic conflict.

Image: White House

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