Temporary Tariff Halt by Trump Boosts Markets, Raises Concerns

A surprise announcement by President Donald Trump to delay new tariffs on most of the United States’ trading partners triggered a brief global market rally on Wednesday, offering short-lived relief from escalating trade tensions. The decision came just one day after the administration imposed heavy tariffs on steel and aluminum, which had already sent markets into a tailspin.

The White House framed the 90-day pause on tariffs for over a dozen countries as a strategic step to open room for negotiations, though tariffs on Chinese imports remain at 125%. Financial markets responded swiftly, with major indices climbing and the U.S. dollar strengthening, as some investors interpreted the move as a softening of Trump’s trade stance.

From Rally to Recoil: A Market on Edge

Despite the initial optimism, volatility quickly returned, as lawmakers and economists warned that the administration’s erratic trade policies were destabilizing markets. Senator Elizabeth Warren was among the most vocal critics, calling the sudden reversals a threat to economic stability.

“Tariff swings from Trump allow insiders to profit and small businesses and workers to pay the price,” Warren wrote on social media, calling for an investigation into potential insider trading linked to tariff policy shifts.

Policy Uncertainty and Investor Unease

The back-and-forth decisions have left industries and investors struggling to adapt. Many businesses fear long-term damage from what critics have described as trade policy whiplash, making it difficult to plan supply chains, pricing, and hiring.

“Markets hate uncertainty—and right now, trade policy is being made by tweets,” said one analyst.

Democrats have echoed Warren’s call for more oversight, suggesting that Trump’s approach benefits well-connected insiders at the expense of workers and small manufacturers already grappling with supply shocks and inflation.

What Comes Next?

With the 90-day delay set to expire in early summer, global markets are bracing for another round of uncertainty. While Trump has touted tariffs as a tool for leverage, critics argue that rapid reversals undermine both negotiating credibility and investor confidence.