Global Stock Markets Rally After Trump Eases Tariffs on Electronics
3 min read
APRIL 15,2025
Global Stock Markets saw a surge on Monday after President Donald Trump announced a temporary rollback on some tariffs, specifically targeting smartphones, laptops, and other key electronics imported from China. The move offered much-needed relief to jittery investors and boosted major tech and auto stocks, sparking optimism—albeit cautiously—across Wall Street and international stock exchanges.
U.S. Stock Market Today: A Temporary Lift
On Wall Street, the S&P 500 rose 0.8% to 5,405.97, recovering from earlier shaky trading. It had briefly lost all of its 1.8% early-day gains before regaining momentum. The Dow Jones Industrial Average climbed 312.08 points (0.8%) to 40,524.79, while the Nasdaq composite added 0.6% to close at 16,831.48.
Leading the rally were big tech names like Apple, which jumped 2.2%, and Dell Technologies, up 4%. These gains came after Trump announced a 90-day exemption on tariffs for certain consumer electronics—a move that prevents an immediate spike in prices for U.S. customers and offers short-term breathing room for tech companies.
RELATED STORY: Trump Tariff Exemptions on Electronics Boost Tech Stocks
Auto Stocks Accelerate on Hopes of More Tariff Relief
The tariff reprieve wasn’t limited to electronics. Automakers also rallied on hopes that the next round of exemptions may target the auto industry. Shares of General Motors rose 3.5%, while Ford Motor Company jumped 4.1%, signaling investor optimism amid ongoing trade tensions.
Tech Stocks Lead the Way in Latest Stock Market Rally
With technology companies at the forefront of global supply chains, this rollback on electronics tariffs provided a direct boost to tech stocks. Investors looking for stock market updates will note that tech stocks continue to be sensitive to U.S.-China trade policy, and even temporary policy changes can have outsized impacts on market performance.
A Cautious Optimism: Market Volatility Still Lurks
Still, many experts warn that the relief may be short-lived. The Trump administration’s tariff policies have been unpredictable, with constant shifts making it difficult for businesses to plan long-term. That volatility has contributed to historic market swings in recent weeks, and the temporary nature of this new exemption means uncertainty remains high.
“The reality is that these are temporary measures,” said Lisa Shalett, Chief Investment Officer at Morgan Stanley Wealth Management. “Markets may get short-term gains, but long-term planning remains incredibly difficult.”
China Welcomes Tariff Pause, But Calls for Full Rollback
In response to Trump’s announcement, China’s Ministry of Commerce issued a statement welcoming the pause but reiterated its call for a full cancellation of U.S. tariffs. Chinese President Xi Jinping echoed the sentiment during a diplomatic tour of Southeast Asia, emphasizing that “no one wins in a trade war” and positioning China as a stabilizing force amid global stock market uncertainty.
Bond Market Calms, Offering Further Support to Wall Street
Beyond stocks, signs of calm returned to the U.S. bond market, which had experienced a sudden spike in yields last week. The 10-year Treasury yield eased to 4.37%, down from 4.48% on Friday. The easing came after inflation expectations in the U.S. remained relatively steady, according to a Federal Reserve Bank of New York survey.
This is encouraging news for the Federal Reserve, which is closely monitoring inflation to guide future interest rate decisions. Stable inflation expectations may reduce pressure on the Fed to hike rates further, another potential tailwind for equity markets.
Global Markets Follow Wall Street’s Lead
The Global Stock Markets rally wasn’t limited to the U.S. European stock markets saw major gains, with France’s CAC 40 jumping 2.4% and Germany’s DAX up 2.9%. In Asia, Japan’s Nikkei rose 1.2% and South Korea’s Kospi added 1%.
In China, the Hang Seng index surged 2.4%, while Shanghai’s main index climbed 0.8%. A major factor behind the jump: China’s exports rose 12.4% in March year-over-year, as exporters rushed shipments before anticipated U.S. tariff hikes.
The Dollar Under Pressure
Meanwhile, the U.S. dollar weakened, slipping against the euro and Japanese yen while slightly edging up versus the Canadian dollar. The decline in the dollar’s value signals a possible shift in investor sentiment, with some reallocating funds to other markets amid ongoing U.S. policy volatility.
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