Thu Apr 10 16:56:12 UTC 2025: ## Wall Street Plunges Despite Trump’s Tariff U-Turn

**New York, NY** – Wall Street experienced a sharp reversal Thursday, erasing earlier gains fueled by President Trump’s temporary delay of new tariffs. The market downturn reflects lingering concerns about the economic fallout from the ongoing trade war, amplified by a larger-than-expected drop in March’s US consumer inflation.

The unexpected inflation dip fueled speculation that uncertainty surrounding Trump’s trade policies has already begun to negatively impact the US economy. This led investors to sell off the dollar, anticipating a future resurgence in inflation once tariffs take full effect, potentially forcing the Federal Reserve to raise interest rates further – a move that could stifle economic growth.

Analysts remain divided on whether the inflation decrease signals a sustainable trend or a temporary response to economic slowdown anxieties. The fear, according to Daniel Murray of EFG Bank, is that tariffs will simultaneously increase inflation and decrease growth, a difficult scenario for central banks to navigate.

The uncertainty sent oil prices tumbling on decreased demand expectations, while safe-haven assets like gold and the Swiss franc surged. Wednesday saw record gains after Trump’s announcement, but Thursday’s Wall Street decline dampened the global optimism that followed. While the EU paused its retaliatory tariffs, Trump maintained a 10% tariff on some goods and escalated the trade war with China, hiking duties on Chinese goods to 25%.

Despite this escalation, Chinese markets benefited from the relief rally, boosted by anticipation of new stimulus measures from Beijing. Hong Kong saw its third consecutive day of gains after Monday’s significant drop. However, analysts warn that the current trajectory points towards a problematic economic decoupling between the US and China, with neither side showing immediate signs of compromise. A successful US Treasury auction eased some pressure on the bond market, but overall market sentiment remains volatile. The consensus is that the trade war’s uncertainty continues to destabilize global markets.

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