Asian governments breathed a sigh of relief as U.S. President Donald Trump decided to pause many of his reciprocal tariffs for 90 days, giving time for negotiations with many of the U.S.’s major trading partners—with one significant exception. Chinese goods now face a 125% tariff, after Trump hiked rates owing to Beijing’s “lack of respect.”
Japan’s Nikkei 225 rose 9.1% on Thursday after Trump’s tariff pause. South Korea’s KOSPI rose 6.6%, Taiwan’s Taiex index jumped by 9.3%, and Australia’s S&P/ASX 200 rose by 4.6%. Still, these indexes are below where they were before Trump’s “Liberation Day” announcement shocked governments, companies, and markets.
