By: Isuru Parakrama
April 10, World (LNW): Financial markets across the Asia-Pacific region rallied strongly after a temporary halt was announced on a significant portion of trade tariffs recently introduced by the United States.
The decision, revealed by President Donald Trump, signals a 90-day suspension on the implementation of most so-called “reciprocal” tariffs, triggering widespread relief amongst global investors.
The reaction was particularly pronounced in Tokyo, where Japan’s benchmark Nikkei 225 index surged over 8% in early trading. Analysts attributed the rebound to improved market sentiment following several days of volatility and uncertainty.
One Tokyo-based investment strategist described the regional response as a “collective exhale,” noting that markets had been under intense pressure amid escalating trade hostilities.
In the United States, the positive momentum was already being felt, with Wall Street recording some of its most significant single-day gains in recent history.
Investors responded favourably to the pause, which they interpreted as a sign that the door remains open for dialogue and renegotiation, even as deeper trade disputes persist.
Despite the temporary relief, tensions between Washington and Beijing remain elevated. Whilst the new reprieve covers many countries, China continues to face additional economic pressure after the US raised its tariff rate on Chinese imports to 125 per cent. The move was seen as retaliation after China earlier announced an 84 per cent levy on a broad range of American goods.
President Trump, speaking at a public event held at the White House, struck a defiant yet measured tone. Addressing a crowd gathered for a Nascar-related ceremony, he insisted that the new trade approach was about securing “fair deals” for the United States.
He stated that countries that had long benefitted from imbalanced agreements would now be required to engage in more equitable trading arrangements.
Under the updated measures, a general tariff of 10 per cent will still apply to most US trading partners, excluding those currently engaged in bilateral negotiations. Whilst the temporary suspension offers a reprieve to businesses and investors, economists warn that the broader trade environment remains fragile.
In the coming weeks, attention is expected to shift towards diplomatic efforts to resolve deeper economic disagreements. Market analysts suggest that if progress can be made between the US and its trading partners—especially China—the volatility seen in recent weeks could give way to a more stable outlook.
However, if talks falter, the current rally may prove to be short-lived.
