After the terror, the euphoria. When, on April 9th, President Donald Trump postponed for 90 days the most illogical and destructive of his tariffs, after a meltdown in financial markets, the\u00a0s&p<\/small>\u00a0500 index of American stocks rose by 9.5%, its fastest daily rise in nearly 17 years. The darkest scenarios for the world economy that had been envisaged by investors until that moment are now unlikely. It seems there is some limit to the market falls the president will tolerate on his watch. After the chaos that had followed Mr Trump\u2019s announcement of \u201creciprocal\u201d tariffs a week earlier, that is no small source of comfort for the world.<\/p>\n\n\n\n
But do not mistake the consolation of having avoided disaster for good fortune. The scale of the shock to global trade set off by Mr Trump is still, even now,\u00a0unlike anything seen in history<\/a>. He has replaced the stable trading relations which America spent over half a century building with whimsical and arbitrary policymaking, in which decisions are posted on social media and not even his advisers know what is coming next. And he is still in an extraordinary trade confrontation with China, the world\u2019s second-biggest economy.<\/p>\n\n\n\n Investors and companies everywhere have been put through the wringer. Global markets crashed in response to Mr Trump\u2019s first tariff announcement. The S&P<\/small> 500 fell by about 15%. Long-dated Treasuries sold off, as hedge funds were forced to unwind their leveraged positions. The dollar, which is supposed to be a safe haven, fell. After the tariffs were delayed, stockmarkets enjoyed a vertiginous climb. Between its low and high on the day, Nvidia\u2019s value fluctuated by over $430bn.<\/p>\n\n\n\n Even after the tariff pause, however, Treasury yields remain elevated. Global stocks are 11% below their highs in February\u2014and justifiably so<\/p>\n\n\n\n Read it all<\/a>.<\/p><\/p> The Economist cover 👀 pic.twitter.com\/yIs3oe0hpS<\/a><\/p>— MAKS 24 🇺🇦👀 (@Maks_NAFO_FELLA) April 10, 2025<\/a><\/blockquote>