As the United States imposed pause on global tariffs is soon nearing its July 9 deadline, global markets are expecting some relief but seeing some jitters.
On April 9, President Donald Trump announced that he is applying a 90-day pause on new tariffs. On social media, he wrote that he had “authorised a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
Devarsh Vakil, Head of Prime Research, HDFC Securities, said: “Reports of progress on U.S. trade agreements with Canada and the European Union lifted Wall Street sentiment, even as the July 9 deadline approaches for the resumption of President Trump's reciprocal tariffs.”
HSBC’s Investment 카지노 Q3 2025 had highlighted that markets have had a roller-coaster ride since late 2024, swinging from post-election optimism to tariff-related shock and pessimism, and then back to hope as the US gave all countries a 90-day reprieve on reciprocal trade tariffs. “The sheer volume of US policy announcements and many U-turns make it difficult for investors to take strong views or to quantify the impact on growth and earnings,” the HSBC report said.
Market Jitters
Global stock markets have tumbled following the latest shifts in US trade policy. The S&P 500 has fallen over around 5-7 percent days after the pause tariffs announcement and is slowly recovering. Asia markets too experienced sharp fall but has been slowly recovering.
India’s Nifty 50 experienced earlier volatility due to corrections in mid-cap and small-cap stocks but reacted more mildly after the "Liberation Day" announcement, slipping less than 1 percent.
The Reserve Bank of India’s Financial Stability Report for June 2025 highlighted that tariffs are one of the major near–term risks for financial stability. “Shifting US trade policies and lack of clarity surrounding its economic policies triggered a spike in volatility and sharp price declines across a range of markets. Consequently, financial conditions have tightened, and growth prospects have weakened. Though markets have recovered from the early-April lows due to sharp tariff hikes, considerable uncertainty persists about the evolution of trade patterns and economic outlook
Geopolitical conflicts, capital outflows and reciprocal tariff/trade slowdown were identified as major near-term risks to domestic financial stability,” the RBI FSR report showed.
Deals In The Making
In a televised interview on Fox 카지노 사이트’ Sunday Morning Futures, Donald Trump appeared to redefine what he considers a “trade deal,” implying that personalised letters to world leaders could suffice in place of formal agreements. “I’m going to send letters, that’s the end of the trade deal,” Donald Trump told host Maria Bartiromo after she pressed him for clarity on his trade strategy. Bartiromo, seeking confirmation, responded: “You’re gonna send the letters.”
In a particularly striking moment, Trump even rehearsed one such letter aloud, mocking his intended message to Japan—a country he has frequently criticised on trade.
“Dear Mr. Japan, here’s the story. You’re going to pay a 25% tariff on your cars.” Despite the high-stakes rhetoric, the White House has made limited headway in striking formal trade deals. While the UK and US announced a tentative agreement in May, it left unresolved issues around steel and aluminium imports.
