Asian stock markets surged on Thursday after US President Donald Trump announced a 90-day pause on tariffs for 75 countries, including India, offering a wave of relief to global investors amid escalating trade tensions.
Major indices across Asia witnessed a significant boost. Japan’s Nikkei 225 index soared by 8.34%, while Taiwan’s weighted index climbed over 9%. South Korea’s KOSPI index jumped more than 5%, and Hong Kong’s Hang Seng saw a 4% increase by the time of reporting.
Indian stock markets, however, remained closed on Thursday due to the public holiday of Shri Mahavir Jayanti.
The relief came despite the intensifying trade conflict between the United States and China. On Wednesday (local time), President Trump raised tariffs on Chinese goods to 125%, citing China’s “lack of respect” for global trade norms. This move was in retaliation to China’s decision to hike its tariffs on US goods from 34% to 84%, effective April 10.
In contrast, Trump announced a temporary reduction in tariffs to 10% for 75 countries currently in trade negotiations with the United States.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the tariff charged to China by the United States of America to 125 %, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the USA and other Countries are no longer sustainable or acceptable,” Trump posted on Truth Social.
“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!” he added.
The development sparked optimism in regional markets, as countries including India, now enjoy temporary tariff relief and an opportunity to recalibrate their trade relations with the US without immediate pressure.