The morning saw Trump's 104% tariffs on China take effect, prompting immediate retaliation as China implemented 84% tariffs on American goods. The EU followed with approval of $23 billion in countermeasures. Markets tumbled globally while bonds sold off, igniting recession fears.
By afternoon, a dramatic shift occurred. Trump announced a 90-day pause on tariffs for most nations while simultaneously raising China's rate to 125%. This sudden reversal triggered an historic market rally, with the S&P 500 surging 9.5% - one of its largest gains since World War II.
Trump explained the decision by stating people were getting "a little bit afraid" or "yippy." Media framing varied dramatically, with conservative outlets describing it as strategic negotiation while liberal sources called it a "surrender" or "flip-flop." Economists cautioned the pause might not prevent recession, despite the market surge.