Markets whipsawed violently as Trump announced a surprising 90-day pause on tariffs for most nations while increasing China's rate to 125%. The Nikkei responded with its second-largest gain in history, surging 9.1% (2,894 points) to close at 34,609 yen as investors who had sold short rushed to cover positions.

Beijing immediately countered with 84% retaliatory tariffs on all US imports, escalating the trade war despite the broader global reprieve. ASEAN criticized US tariff policies but pledged not to retaliate.

The EU joined Japan in suspending retaliatory measures during this 90-day window. Japan's government labeled the temporary reprieve "positive" while Fast Retailing founder Tadashi Yanai dismissed Trump's tariffs as "irrational" and predicted they "won't last."

By early evening, market optimism faded as the Dow plunged over 1,000 points, reflecting persistent investor anxiety despite the tariff pause.