Japan’s Nikkei Jumps 7.4% on Tariff Relief \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Japan’s Nikkei 225 index soared 7.4% early Thursday as investors cheered President Trump’s decision to pause most global tariffs for 90 days. The rally follows a historic Wall Street rebound led by the S&P 500’s 9.5% surge. Markets had previously tumbled on fears of a global recession sparked by Trump’s tariff plan.
Quick Looks
- Nikkei 225 jumped 7.4% in early Thursday trading.
- Gains mirror massive overnight rally on Wall Street.
- S&P 500 surged 9.5%, Dow rose nearly 3,000 points.
- Trump announced a 90-day pause on most tariffs Wednesday.
- China remains excluded, with tariffs increasing to 125%.
- Treasury Secretary says 10% global tariff still applies.
- Global markets had slumped earlier due to trade war fears.
- Uncertainty remains as the U.S.-China trade dispute intensifies.
Deep Look
Global markets staged a powerful rebound early Thursday, with Japan’s Nikkei 225 index jumping 7.4% in the first 15 minutes of trading on the Tokyo Stock Exchange, following President Donald Trump’s surprise announcement of a 90-day pause on most global tariffs.
The benchmark index hit 34,052.58, echoing the massive overnight rally on Wall Street, where the S&P 500 surged 9.5%, one of its best single-day performances since World War II. The Dow Jones Industrial Average jumped 2,962 points (7.9%), and the Nasdaq soared 12.2%, closing out a day that erased $4 trillion in losses sustained during the previous week.
This sudden and powerful market reversal was sparked not by economic fundamentals, but by a single, brief social media post from President Trump, made at 9:37 a.m. ET on Wednesday:
“THIS IS A GREAT TIME TO BUY!!! DJT”
The post—cryptic, capitalized, and punctuated by the president’s initials—set off speculation and buying frenzies across various market sectors. While investors were initially uncertain what the message referred to, clarity came less than four hours later, when Trump announced a temporary pause on nearly all newly imposed tariffs.
Trump explained that more than 75 countries had been actively negotiating trade terms and had not retaliated against his previous tariffs, which led to his decision to ease tensions.
“I have authorized a 90-day PAUSE,” he wrote, signaling what markets took as a de-escalation in the trade war.
Nikkei Follows Wall Street’s Lead
Asian markets—particularly Japan—responded swiftly to the optimism radiating from the U.S. Nikkei futures spiked overnight, and by the opening bell in Tokyo, buying momentum was strong. Within minutes, the Nikkei 225 had surged 7.4%, recovering ground lost earlier in the week when Trump’s “Liberation Day” global tariff declaration rattled international investors and sparked recession fears.
The rally in Tokyo was broad-based, with major gains in technology, export, and industrial stocks—sectors highly sensitive to U.S. trade policy. Export-heavy conglomerates like Toyota, Sony, and Mitsubishi all saw double-digit percentage gains within the session’s first hour.
For Japanese companies reliant on global supply chains and American consumers, the tariff pause meant a temporary reprieve from cost increases and supply disruptions. Investors also took comfort in the idea that the U.S. may be willing to negotiate, despite Trump’s combative tone in recent months.
China Remains the Outlier
Despite the broad easing of tariffs, Trump’s tone on China remained confrontational. The president announced that tariffs on Chinese imports would rise to 125%, a dramatic escalation in the ongoing U.S.-China trade war. Treasury Secretary Scott Bessent confirmed the increased penalties, describing them as a targeted measure to counter China’s alleged trade abuses and lack of cooperation.
“We’re keeping the 10% global tariff in place,” Bessent explained. “But China will face significantly higher rates. They are the exception.”
This firm stance on China underscores that the trade war is far from over, and some analysts are warning that volatility may return quickly—especially if China retaliates with tariffs of its own or if negotiations falter.
Global Markets Breathe, But Risks Linger
Wednesday’s stunning rally provided welcome relief to investors across the globe. Just a week prior, global markets were tumbling as Trump shocked the world by announcing sweeping tariffs under the banner of “Liberation Day.” That move wiped out trillions in market capitalization and sent central banks and finance ministries scrambling.
Yet, even after the rebound, most indices—including the S&P 500 and Nikkei 225—remain below their pre-tariff levels. The bounce-back, while historic in magnitude, is not a full recovery, and markets remain vulnerable to the unpredictable swings of international policy.
In particular, China’s reaction to the U.S. tariff increase will be closely watched. Any retaliatory measures could rattle markets all over again, especially as investors begin pricing in prolonged disruptions to global supply chains, currency instability, and geopolitical risk.
Market Manipulation Concerns
While investors celebrated the gains, critics raised red flags over the timing and tone of Trump’s initial post. Ethics experts questioned whether the president’s message, which preceded a major market-moving announcement, might violate rules around market manipulation or the appearance of self-dealing, especially since Trump has personal financial ties to Trump Media (stock symbol: DJT)—a company that surged 22.67% on the day of the post.
Nonetheless, the White House defended the statement.
“It is the responsibility of the President of the United States to reassure the markets and Americans about their economic security,” said spokesman Kush Desai, deflecting concerns that the post was intended as financial advice.
Looking Ahead
For now, the 90-day tariff pause offers a window of opportunity for diplomacy and economic stabilization. But it also sets the stage for a potential second wave of market volatility, especially if Trump reimposes tariffs after the deadline or if China chooses to escalate the conflict.
Investors are likely to watch upcoming trade talks, economic indicators, and the president’s social media activity with greater scrutiny than ever.
While Japan’s Nikkei, Wall Street, and other indices may have scored short-term wins, the underlying uncertainty about the future of global trade remains a potent source of risk.
Japan’s Nikkei Jumps
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