The stock market made a big comeback on Wednesday after former President Donald Trump announced a 90-day pause on some tariffs — taxes placed on goods from other countries. The announcement led to the biggest one-day market jump in years. But while investors are celebrating, many people are wondering: what does this mean for regular consumers and shoppers?
Stock Market Explodes with Gains
After days of falling prices, the markets soared. The S&P 500 went up 7.6%—its biggest one-day gain in five years. The Dow Jones rose more than 2,400 points (a 6.4% increase), and the Nasdaq jumped nearly 10%.
Big companies like Apple, Nvidia, and Tesla all saw their stock prices climb sharply. Apple rose more than 11%, Nvidia gained 13%, and Tesla skyrocketed 19%. Even Walmart shares jumped nearly 10%.
The sudden rise came after Trump posted on Truth Social:
“I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
He also said tariffs on China would go up — to 125%. So while most countries got a break, China didn’t.
What Are Tariffs?
Tariffs are like taxes that are added to goods coming into the country from abroad. They can make products more expensive for consumers. For example, if there’s a tariff on electronics from China, the price of your next phone or laptop might go up.
When tariffs go down, it can help lower prices. That’s part of why investors were happy about the pause. Lower tariffs might mean cheaper goods, which helps both companies and customers.
What Does This Mean for You?
Right now, shoppers might get a short break from rising prices. Electronics, clothes, and household items that aren’t from China could become more affordable or at least stop going up in price. But this relief may be short-lived — the pause is only for 90 days.
China’s tariffs, on the other hand, are now higher than ever. Since many goods sold in the U.S. are made in China, prices on those items could still go up.
Also, this tariff pause doesn’t apply to all product categories. “Sector tariffs,” which target specific industries, will stay in place.
Is There a Real Plan?
Experts say the market bounce is a good sign — for now. But many are warning not to celebrate too soon.
“This allows for at least a near-term rally,” said Sam Stovall, an investment expert. “But I would not assume that the bottom has been put in place. Fool me once, shame on you; fool me five times, shame on me.”
Treasury Secretary Scott Bessent said he’ll take the lead in future negotiations. Investors hope he can strike better deals before the pause ends.
Before Trump’s announcement, the stock market had been falling fast. In just four days, the Dow had dropped more than 4,500 points. The S&P 500 and Nasdaq were both down more than 12%. That was the worst stretch since the COVID-19 pandemic.
Not Everyone Benefited
Even with the huge market gains, not every stock went up. Bristol-Myers Squibb, a big biopharma company, was the only stock in the S&P 500 to lose value on Wednesday. It fell slightly, going down about 0.4%.
Final Thoughts
Trump’s 90-day tariff pause gave the stock market a big lift. For everyday people, it might mean slightly lower prices on imported goods — at least for now. But with China facing even higher tariffs and no long-term plan yet announced, it’s hard to say whether this change will truly help the average American in the long run.
As negotiations continue, all eyes are on what happens next. Will the pause lead to better trade deals? Or is it just a temporary break before more economic pressure?
Stay tuned — the next 90 days could shape the future of your wallet.
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