Markets Rally Sharply After Trump Softens His Stance On China Tariffs, Fed Chair Powell

US stocks surged connected Wednesday aft a Wall Street Journal study revealed nan White House is considering important cuts to China tariffs successful a bid to de-escalate nan waste and acquisition war. A elder charismatic said duties could driblet to 50–65%, down from nan existent 145% connected immoderate imports.

Markets besides responded positively to President Trump’s unexpected reassurance that he has “no intention” of removing Federal Reserve Chair Jerome Powell, contempt his earlier nationalist attacks. Just days ago, Trump had branded Powell a “major loser” and hinted astatine an early termination.

By 09:46 a.m. ET, nan Dow was up 2.6%, while nan Nasdaq Composite surged 3.7% and nan S&P 500 climbed 3%, building connected Tuesday’s monolithic 1,000-point Dow rally. Investors viewed nan copy signals—a retreat from combative China argumentation and an oliva branch to Powell—as a measurement toward stableness aft weeks of heightened uncertainty.

According to a Wall Street Journal report, nan US authorities is contemplating a simplification successful tariffs connected Chinese imports arsenic a measurement to easiness tensions pinch Beijing. A White House charismatic mentioned successful nan study suggested that nan China tariffs could alteration to a scope of 50%-65%. 

Karl Haeling from LBBW noted that these developments person been welcomed by nan markets. However, Haeling cautioned that President Trump's beardown connection connected waste and acquisition could resurface successful nan future.

Trump’s hint that tariffs connected Chinese imports would beryllium lowered, while still “not zero,” marked a notable displacement successful reside and added momentum to nan marketplace rally.

Published on: Apr 23, 2025 8:00 PM IST