Was There a Hint About a Tariff Pause for China Before the Sudden U-Turn

Was There a Hint About a Tariff Pause for China Before the Sudden U-Turn?

The first week of April unfolded like a geopolitical thriller, with markets reacting wildly to conflicting messages from Washington and Beijing. But amid the chaos, was there a subtle signal—a hint—about a potential tariff pause before the dramatic escalation?

Let’s recap the whirlwind:

April 2: The U.S. imposes a 34% tariff on China, sparking global headlines.
April 4: China retaliates with its own 34% tariff on U.S. goods.
April 7 (Early Hours): News breaks of a 90-day pause on tariffs. Markets soar on the hope of de-escalation.
Minutes Later: The White House denies the report, calling it fake news.
Later on April 7: President Trump gives China one day to roll back its retaliatory tariffs.
April 8: With no response from China, the White House slaps an additional 50% tariff, raising the total to 84%.
April 9: China retaliates with an additional 50%, matching the 84% total. (If you wonder why these tariffs end with magical number "4" you can read here)

Then came the surprise twist.

On the same day, the White House released a statement:

"Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately...
Conversely, and based on the fact that more than 75 countries have reached out to U.S. representatives and have not retaliated against the U.S., I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately."

The market soared again.

So, was the early April 7 report—called fake news at the time—actually a leaked hint at what was coming? Was the dramatic back-and-forth part of a strategic dance or a sign of internal disarray?

Either way, this episode highlights the sheer volatility in modern geopolitics and its immediate impact on markets. For investors, traders, and policymakers alike, staying nimble and informed has never been more crucial.

Comments

🌾 Why Billionaires Are Buying Farmland — The Real Reasons Behind the Land Rush

🏞 Why Billionaires Are Quietly Buying Farmland and Vast Tracts of Land In recent years, some of the world’s richest people — including Bill Gates , Jeff Bezos , and Mark Zuckerberg — have quietly become major landowners. From farmland in the U.S. Midwest to tropical ranches in Hawaii, they are accumulating land faster than ever. But what’s driving this modern-day land rush? 🌾 1. A Hedge Against Inflation Farmland is one of the oldest and safest tangible assets . It generates real income through crops and leases while preserving value when inflation rises. As food prices climb, farmland values follow — making it a powerful inflation hedge for billionaires whose wealth is tied up in volatile tech stocks. 🌍 2. Control Over Food and Resources Land means control of food production, water rights, and renewable energy potential . Bill Gates’s 270,000-acre farmland portfolio — the largest in America — reflects a push toward sustainable food systems and climate-friendly agr...

Aerospace & Defense Stocks Breakdown: Which Companies Are Worth Investing In?

If you are looking for US Aerospace & Defense Stocks to invest in then let’s compare Lockheed Martin (LMT), RTX Corporation (RTX), General Dynamics (GD), General Electric (GE), and Boeing (BA) from an investment perspective, focusing on: Core business & products Defense exposure Stability & financial health Growth prospects Valuation and dividends 🔹 1. Lockheed Martin ( LMT ) Core Business : Pure-play defense contractor — fighter jets (F-35), missiles, helicopters (Sikorsky), space systems. Defense Exposure : ~96% of revenue comes from the U.S. Department of Defense and allied governments. Stability : Very stable, heavily backed by multi-year government contracts. Growth : Moderate growth; mostly in line with defense budgets. Dividend : Strong dividend (~2.7%), with decades of increases. Valuation : Often seen as fairly valued or slightly undervalued in uncertain times. Risks : Dependent on U.S. defense budget; limited commercial exposure. ✅ Best for cons...

Is It Time to Buy US Stocks?

📉 Is It Time to Buy US Stocks? Nobody can perfectly time the market—let’s get that out of the way first. But when your favorite asset is hovering near a major technical support , you need to ask yourself a key question: ❓ If it drops, will you regret buying? Or if it flies, will you regret missing out? If you lean toward the second one, it might be time to pull the trigger . But let’s be clear: Never go all in. Never fully exit. Unless the fundamentals change. 🔍 Why Now? Both $QQQ and $SPY are sitting close to their 200-week SMA —a historically strong support zone. (A 10% drop in SPY would bring it down to its 200-week simple moving average (SMA)) Institutions often accumulate at these levels while retail panic sells. You might be thinking, "This time is different." But I’ve heard that exact phrase during: Market all-time highs Bearish breakdowns Sudden sentiment shifts The truth is: sentiment flips fast. Most investors aren't rational. They...

📈 SigmaTrader Blog

Search This Blog