Trump's Temporary Suspension of Tariffs Shakes the Market: Recovery, Reversal of Recession and

Trump did not hesitate to make a series of public statements following this announcement. He asserted, "No other president has done what I have done... Someone has to do it. It has to stop because it is not sustainable." He emphasized that China earned more than $1 trillion in trade profits from the United States last year, while claiming that his administration has now "reversed that." Trump's story is clear: the tariff increase is a long-overdue adjustment to the broken trade dynamics. China Wants to Reach an Agreement Just a few hours after the announcement to suspend tariffs, Trump stated: "China wants to reach a deal. They are in the process of finding a solution." This shows that the 125% tax on Chinese goods could be a pressure tactic to force Beijing to come to the negotiating table. Treasury Secretary Bessent reinforced this by stating that this has been Trump's strategy from the beginning—to push China into a weaker position. She also confirmed that this timing is intentional and not a reaction to market panic. Trump's Suspension of Tariffs: A Strategic Turning Point Shaking and Reviving the Market On April 9, 2025, President Donald Trump shocked global markets by allowing a 90-day suspension of tariffs on most countries, except for China, which is currently facing tariff increases of up to 125%. Although this move initially caused confusion and instability, it has since been praised by his allies as a well-calculated move—and even led Goldman Sachs to retract its recession forecast. Let's explore the reasons behind this change and how the key voices are influencing this change.

From Market Shock to Optimism: Goldman Sachs Reverses Recession Call One of the most immediate impacts of Trump's announcement was the strong recovery of the market. The S&P 500 rose over 8%, while the Nasdaq increased by more than 10%—indicating a renewed confidence among investors. In a surprising turn of events, Goldman Sachs has officially canceled its recession prediction, citing that this change is due to the clarity and potential global cooling brought about by the tariff suspension. This is a pivotal moment in Wall Street sentiment, shifting expectations from pessimism to cautious optimism. The Enlightenment from Political Allies and Cryptocurrency Leaders Cryptocurrency investor and "crypto czar" David Sacks has added fuel to the fire by accusing critics of supporting Trump’s failure—even if it means the market will collapse: "Fortunately, their hopes have been dashed. Trump has been exonerated." This reflects the common viewpoint of Trump supporters: that the market recovery and Goldman’s reversal of opinion demonstrate that the administration's approach is not only effective but also strategically sound. What Comes Next? More Volatility or Sustainable Recovery? While the market welcomes the pause, the road ahead remains uncertain. The 125% tariff on Chinese goods is still in effect, and China's retaliation through WTO complaints and increased tariffs could escalate tensions. However, if China sits down at the negotiating table and trade relations in general improve, this move could mark a turning point for both Trump's legacy and global economic stability.

Trump's temporary suspension of tariffs for 90 days is not just a policy decision—it is a power play to reverse the downturn, affecting the market. With political allies and market analysts changing their tone, and China reportedly "finding a way," the coming weeks could determine whether this recovery can be sustained—or whether volatility will recur once again.