In a dramatic policy reversal on April 9, 2025, President Donald Trump announced a 90-day suspension of newly imposed tariffs on numerous countries, citing positive responses from those nations. However, he simultaneously escalated economic pressure on China by increasing tariffs on Chinese imports to 125%, attributing the move to a “lack of respect” from Beijing. These decisions followed extreme financial market volatility and mounting criticism from both domestic and international stakeholders.
The shifting policy once again triggered wild swings across financial markets. In the span of a week, U.S. stocks saw both some of their worst single-day losses and best single-day gains in history, as market participants reacted to the chaos with a mix of panic and relief. While markets initially rallied on news of the tariff rollback for most countries, the escalation with China and a greater sense of uncertainty reversed sentiment. The result has been one of the most unstable stretches of trading in recent memory, with traders struggling to price in the risks of an unpredictable and evolving trade landscape.
Amid the turbulence, gold has surged as a safe-haven asset, with spot prices hitting a record intraday high of $3,246.80/oz. on April 11, according to Kitco. Analysts expect demand for gold to remain strong as market uncertainty and geopolitical tensions show no signs of easing.
