Bulls return to PSX as Trump pauses tariffs for 90 days

The Pakistan Stock Exchange (PSX) experienced a significant rebound on Thursday, with the KSE-100 index surging by over 2,300 points to reach 116,482.21 points, marking a 2.04% increase. This surge came after U.S. President Donald Trump announced a 90-day pause on higher tariffs for all countries, excluding China.

The stock market opened on a positive note, following a period of substantial declines triggered by Trump’s previous imposition of reciprocal tariffs, which had fueled a global trade dispute.

Market analysts have attributed this rally to Trump’s decision to halt the implementation of the planned tariff increases. The U.S. president revealed the 90-day tariff suspension, stating that it would apply to all nations except China. In contrast, tariffs on China would be increased to 125%, effective immediately.

In his statement on Truth Social, Trump explained that the decision to raise tariffs on China stemmed from what he described as China’s lack of respect for global markets.

“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the US and other countries, is no longer sustainable or acceptable”

He added, “China wants to make a deal. They just don’t know how quite to go about it…President Xi Jinping is a proud man. They don’t know quite how to go about it, but they’ll figure it out”

This development has played a significant role in boosting market sentiment, particularly in Pakistan, where the PSX has seen a renewed sense of optimism among investors.