Tense huddle across markets as US signals: 'Do not retaliate and you will be rewarded'

In a global standoff reshaped overnight, U.S. Treasury Secretary Scott Bessent offered a stark choice to world leaders: stand down and negotiate, or face the heat. “Do not retaliate and you will be rewarded,” Bessent said on April 9. “Every country in the world who wants to come and negotiate, we are willing to hear you.” Hours earlier, President Donald Trump split the battlefield—escalating pressure on China while offering a 90-day tariff reprieve to over 75 other nations.

President Donald Trump raised tariffs on Chinese imports from 104% to 125% effective immediately, citing “lack of respect that China has shown to the World's Markets.” At the same time, he authorized a 90-day pause on reciprocal tariffs for most other countries.

During this pause, a reduced 10% tariff will apply, offering temporary relief to over 75 nations that contacted U.S. representatives seeking trade negotiations. Trump’s decision appears aimed at isolating China while de-escalating tensions with other allies.

Treasury Secretary Scott Bessent reinforced the administration’s stance. “The only certainty we can provide is that the U.S. is going to negotiate in good faith… What I am certain of, is that what China is doing will affect their economy MUCH MORE than it will ours!”

Markets responded swiftly. The Dow surged 1,800 points, while the S&P 500 climbed 6.0% to 5,281.44, recovering sharply after four days of steep losses that had erased $5.8 trillion in market value.

The shift marks a departure from Trump’s blanket tariff strategy unveiled just a week ago on “Liberation Day,” which had included 104% duties on Chinese products, 20% on EU goods, 24% on Japanese imports, and 25% on South Korean products. Those initial tariffs triggered retaliatory threats, including a 34% response from China.

In India, markets remained under pressure following a 26% tariff on Indian imports to the U.S. Effective April 9, the move deepened concerns after “Black Monday” on April 7, which saw ₹19 lakh crore wiped from market cap.