From Panic to Rally: Biggest Gain Since 2008 After Trump Tariff Reversal

What has President Trump said this week?

〰️

What has President Trump said this week? 〰️

1. Another tariff pause

After imposing reciprocal tariffs last week, President Trump announced on April 9th a “90-day pause for the people who did not retaliate,” referring to countries that chose not to respond with their own tariffs. While tariffs on most countries will return to a universal 10% rate, this pause excludes China, which retaliated and is now facing a 125% tariff on its exports to the U.S. President Trump emphasized that the U.S. would no longer tolerate what he called China’s “unsustainable” exploitation of global trade systems (CNN, 2025).

The announcement provided significant relief to global markets, which had plummeted following “Liberation Day” — the day the tariffs were first announced — leading to the S&P 500’s worst trading day since 2020 (Alpha Insights, 2025).

Despite the market rally, many experts remain skeptical about the administration’s stability and its long-term trade strategy. Questions persist over the feasibility of negotiating trade agreements with dozens of countries within a 90-day window, as well as the broader implications for global trade relations (NBC News, 2025).

Nevertheless, the stock market reacted positively to the announcement. The S&P 500 surged over 7% within minutes of the President’s post on his Truth Social platform, reflecting short-term investor optimism despite lingering uncertainty (The New York Times, 2025).

Still, economists remain cautious. While the market rally signals investor relief, structural risks persist. Goldman Sachs revised its forecast following the announcement, assigning a 45% probability of a recession within the next 12 months (CNN, 2025), underscoring that the threat of an economic downturn has merely been postponed — not eliminated.

2. “America is going to be very rich again, very soon.”

On April 8th, President Trump defended his new tariffs by claiming that the U.S. is "making a fortune with tariffs — $2 billion a day". However, available data suggests this figure may be overstated (The Guardian, 2025).

According to the U.S. Treasury Department, customs and excise taxes — which include import tariffs — have averaged around $200 million per day so far this month. In February, total collections reached $7.25 billion. Even with the new 10% baseline tariff implemented on April 5th and a 104% tariff on Chinese imports starting April 9th, many goods already in transit remain exempt, and the full revenue impact is yet to be seen.

Independent analysis by the Tax Foundation estimates that, if made permanent, the current tariff policy could generate approximately $2.3 trillion over 10 years — around $300 billion per year on average (Tax Foundation, 2025).

Economists also point out that tariffs are primarily designed to discourage imports rather than maximize government revenue. Higher import taxes could lead to reduced trade volumes and increased costs for U.S. consumers. In fact, the broader economic impact of the tariffs — including slower growth and higher prices — could cost the U.S. economy up to $4.5 trillion over the next decade.

3. Coal, the indestructible

On April 9th, President Donald Trump signed a series of executive orders intended to support the coal industry, which has experienced sustained decline, particularly during the previous administration (AP, 2025). The President described coal as the “most reliable, durable, secure, and powerful form of energy,” citing its affordability, efficiency, and energy density, and referring to it as “almost indestructible” (AP, 2025).

Despite these efforts, energy analysts suggest that any resurgence in coal use is likely to be temporary. While the administration links increased energy demand to rising manufacturing activity and the power needs of AI-driven data centers, experts note that market trends continue to favor lower-cost and cleaner energy sources such as natural gas and renewables (AP, 2025). Although the Department of Energy maintains that coal-fired power is now “cleaner than ever,” analysts point out that technologies like carbon capture and storage (CCS) remain limited in scale and do not substantially mitigate coal’s broader environmental impacts (ABC, 2025).

While these policy actions may offer short-term support to coal producers and mining regions, the long-term viability of coal remains uncertain. Market dynamics, environmental concerns, and technological advancements continue to challenge its role in the future energy mix (AP, 2025).