At 12:00 noon on April 22, 2025, U.S. markets exploded with enthusiasm. President Donald Trump appeared to suggest a thaw was on the way in the trade war with China, boosting investor hopes. During a swearing-in ceremony for Securities and Exchange Commission Chairman Paul Atkins in Washington, D.C., Trump stated that tariffs on Chinese goods would “come down substantially,” igniting investor optimism.
Tensions between the world’s two biggest economic powers have reached a new high. This increase came soon after Trump’s announcement about imposing a mind-boggling 145% tariff on Chinese imports. In response, China had already imposed tariffs of 125% on U.S. goods. To his credit, Trump himself admitted that these current tariffs are “very high.” He promised folks that they “won’t be that high” for too long. This change in rhetoric helped to spark a significant rally in the markets.
The DJI was up by 580 points, or 1.4%, and the S&P 500 was up 1.8%. The tech-heavy Nasdaq led the advances, rising 2.3%. Analysts point to investor optimism from trade negotiation progress as a major factor in keeping this rally alive.
In a speech today before the Institute of International Finance in Washington, D.C. He reaffirmed that Trump’s position on not negotiating with the other side. He expressed that the U.S. looks forward to talking together with China. He drove home the point that this is our moment to deliver the “big deal.” Bessent emphasized, “If they want to rebalance, let’s do it together,” indicating a willingness to collaborate on trade issues.
Bessent shared these encouraging trends at a closed door separate JPMorgan event. He underscored the need for constructive dialogue to reach a successful resolution. His remarks are in line with the administration’s fresh effort to reduce trade friction. That’s a welcome change in tone from the past.
Third, Trump reiterated his support of Federal Reserve Chairman Jerome Powell, saying he’s “not going to fire” him. This promise had the effect of deepening market confidence, hinting at more stability in U.S. monetary policy during a time of extreme economic uncertainty.
