Global stock markets staged a dramatic recovery Thursday after U.S. President Donald Trump unexpectedly paused the majority of his newly-imposed tariffs, providing relief to investors following days of significant market turbulence.
In a surprising reversal that came just hours after steep duties had taken effect on dozens of countries, Trump announced a reduction of tariffs on most nations to 10% for a 90-day period. This means the 20% tariffs on Ireland and the European Union have been temporarily reduced, though the punishing 125% tariff on Chinese imports remains in place.
European markets responded with substantial gains in early trading – Frankfurt jumped more than 8%, Paris gained 6.4%, and London surged 6.3%. Dublin’s ISEQ index climbed 3.4%, with Bank of Ireland, Ryanair, and Kingspan shares all rising by over 10%.
According to The Journal, the market rebound extended to Asia, where Japan’s Nikkei 225 jumped significantly as trading began. Hong Kong rallied more than 4% – its third consecutive day of gains after Monday’s historic 13% collapse, its worst performance since the 1997 Asian financial crisis. Shanghai gained more than 1%, supported by optimism about potential Chinese stimulus measures.
On Wall Street Wednesday, the S&P 500 had its third-best day since 1940, surging 9.5% in what analysts described as a shift “from fear to euphoria.”
Tánaiste Simon Harris, who held talks with Trump’s Commerce Secretary Howard Lutnick in Washington yesterday, noted that Trump’s decision would be “a welcome relief for many businesses across Ireland.” Taoiseach Micheál Martin welcomed the announcement, expressing hope for a negotiated settlement in the near future.
European Commission President Ursula von der Leyen called Trump’s decision an “important step towards stabilizing the global economy,” emphasizing that “clear, predictable conditions are essential for trade and supply chains to function.” She reiterated the EU’s offer of bilateral tariff exemptions for cars and other industrial goods, while noting that Europe continues to diversify its trade partnerships.
When questioned about EU countermeasures, Trump appeared surprised and said he hadn’t heard about them, describing it as “bad timing.” His Commerce Secretary Lutnick suggested the measures had yet to take effect and would likely be delayed, to which Trump responded: “I’m glad they held back.”