Markets Cheer Up After Trump's Delay of Partial Tariffs

NEW YORK, THURSDAY—The United States stock market closed higher after Donald Trump announced a partial delay in import tariff duties. Asian and European markets may follow the enthusiasm in the United States.

U.S. President Donald Trump announced a three-month delay for the 10 percent import duty tariff. Meanwhile, additional import duties per country, which reach 32 percent for Indonesia, will remain in effect.

"I hereby approve a 90-day postponement and a reduction in reciprocal tariff rates during this period, from 10 percent, effective immediately," wrote Trump on social media on Wednesday afternoon (9/4/2025) Washington DC time or early Thursday morning WIB.

Trump's announcement sparked excitement in the market. At the close of trading on Wednesday, all U.S. stock indices turned green. The S&P 500, Dow 30, and Nasdaq rose by 9.52 percent, 7.87 percent, and 12.16 percent, respectively. The enthusiasm caused the S&P 500 to jump with its highest surge since 2008.

U.S. government bonds or treasury notes have also surged. The price of the 10-year treasury note soared to 3.24 percent, while the 5-year treasury note jumped to 4.78 percent.

Prices of several commodities also strengthened. Crude oil 1.25 percent, gold 0.4 percent, and copper flew to 5.89 percent.

On the contrary, the exchange rate of the US dollar against several other currencies weakened. The rupiah has the potential to strengthen if this positive trend spreads to Indonesia.

Trump's announcement was delivered after the markets in Asia and Europe had closed. The enthusiasm on Wall Street is expected to spread to Asia and Europe during the opening of trading on Thursday morning.

Only the Chinese market remains uncertain. This is because Trump insists on maintaining BMI on China. The U.S. and China have taken equally firm stances. Currently, the total U.S. BMI for China has reached 125 percent. Conversely, China's BMI for the U.S. now stands at 118 percent. The accumulation of BMI is the result of new tariff adjustments since April 2, 2025.

After Trump announced a total 54 percent BMI on imports from China, Beijing retaliated with a 34 percent tariff on all U.S. imports. The U.S. responded with more tariffs. China then increased the BMI by 84 percent.

"If the US insists on continuing to increase its economic and trade restrictions, China is determined and has many tools to take retaliatory steps and fight to the end," said the Chinese Ministry of Commerce in a statement after the announcement of the new BMI for US imports.

Last week, like stock exchanges in various countries, the Chinese and Hong Kong stock exchanges were in the red. The US is China's main export market. In 2024, China's exports to the US were worth 463 billion US dollars. Conversely, US exports to China were worth 199 billion US dollars.

The Beijing office of the European Chamber of Commerce and Industry (Kadin) said that the US is weakening trade and investment through Trump's tariff decision. Many basic principles of global trade and investment are being reversed by the decision. "This will lead to a large increase in operating costs and inefficiencies, as well as increasing selling prices to consumers," the Beijing office of the European Chamber of Commerce and Industry said in a statement.

Goldman Sachs economists immediately revised their recession projections after Trump's announcement. The US investment bank was one of the first to project that the US would enter a recession if the mass BMI tariffs were implemented. From 60 percent, the chance of a recession has now dropped to 45 percent.

Brooking Institution senior economist Justin Wolfers said Trump heard the recession fears. He suspects that the widespread concerns were the reason Trump finally delayed the implementation of part of the BMI.

Former US Treasury Secretary Larry Summers is among those who have warned of the negative impact of Trump's tariffs. He projects that up to two million Americans could lose their jobs because of Trump's tariffs. This is because supply chains are disrupted by the new tariff regulations.

After Trump postponed some, Summers still reminded that the worst is not over. Of the tens of percent of new BMIs, only 10 percent were postponed. The rest, which could reach 32 percent for Indonesia, will remain in effect.

In addition to Summers, a number of Trump-supporting conglomerates also protested the new BMI tariffs. Some even called the imposition of the tariffs a global economic nuclear war. (AFP/REUTERS/AP)