President Donald Trump has announced a 90-day pause on most of his newly proposed “reciprocal” tariffs—excluding those on China—sparking a major rally in the stock market and easing concerns in the housing sector.
In a post on Truth Social, Trump stated that while tariffs on Chinese imports will be increased to 125%, many of the additional tariffs unveiled last week will be temporarily held off during this negotiation window.
According to administration officials, a baseline 10% tariff will still apply to goods from other trading partners throughout the 90-day period.
The market reacted swiftly and positively. The Nasdaq Composite surged more than 8%, while the Dow Jones Industrial Average and S&P 500 both jumped over 5%, marking one of the strongest single-day rallies in at least five years.
Homebuilder stocks were among the top gainers, driven by renewed optimism in the housing sector. The delay in tariffs offered hope that the cost of building materials might stabilize, easing fears of a recession and rising construction costs.
“Because tariffs can hinder economic growth, this pause on the most aggressive measures is definitely welcome news,” said Danielle Hale, Chief Economist at Realtor.com. However, she cautioned that market uncertainty remains high. “There have been so many shifts in policy just over the past week. Consumers are still trying to figure out what it all means.”
Hale pointed to recent surveys showing that consumers are increasingly worried about job security and their financial outlook—concerns that deepened in March following a dip in confidence seen in February.
“It’ll take some time to see how consumers respond to this latest move,” she added.
Treasury Secretary Scott Bessent clarified that the pause does not apply to industry-specific tariffs. A 25% tariff on imported vehicles and auto parts remains in place. Additionally, tariffs on Canadian lumber—a vital material in home construction—will rise to 34.5% this year, more than double the current rate.
