April 15, 2025 – Global financial markets have shown signs of recovery following President Donald Trump’s recent adjustments to his tariff policies. After initial market turmoil sparked by sweeping tariffs announced earlier this month, selective exemptions have provided temporary relief, though economic uncertainty remains.
Market Response to Tariff Adjustments
On April 9, the S&P 500 experienced a significant rebound, surging 9.5%—one of its largest gains since World War II—after President Trump announced a 90-day pause on tariffs for most countries, easing fears of a broad trade war. AP News However, tariffs on Chinese imports were sharply increased to 125%, escalating the U.S.-China trade conflict. AP News
Tech stocks also benefited from the exemption of key electronic products like smartphones, laptops, and semiconductors from new tariffs on Chinese imports. Apple shares rose 2.2%, reversing a previous 9% decline, and the tech-heavy Nasdaq gained 0.6%. New York Post
Automotive Industry Faces Mixed Outcomes
The automotive sector has experienced mixed reactions. General Motors and Ford saw stock gains following President Trump’s comments about offering support to car manufacturers affected by the recently implemented 25% tariff on all foreign-made vehicle imports. In contrast, Tesla, considered less impacted by these tariffs, fell 1.9%. Investor’s Business Daily
Analysts predict that new car prices will rise by $5,000–$15,000, driving consumers toward used vehicles and reducing new car sales by 15%–20%. The long-term effects remain uncertain amid evolving policies, leaving the auto industry in a state of flux. Investor’s Business Daily
✈️ Airlines Adjust Amid Economic Headwinds
Airlines entered 2025 with high expectations for a record-breaking year, buoyed by strong performance in 2024. However, the U.S. trade war and subsequent tariff announcements have severely impacted the aviation industry. Deutsche Bank warns of an earnings recession for airlines in 2025, with notable carriers like Delta and United revising growth expectations due to reduced demand and economic uncertainty. Business Insider
Delta has already halted capacity expansions for the busy summer travel season, citing stalled growth. Tariffs have caused airline stock values to swing drastically, with initial losses of up to 15%, followed by a surge from a temporary 90-day pause on tariffs. Business Insider
️ Energy Sector Faces Demand Slowdown
The International Energy Agency (IEA) has significantly downgraded its 2025 global oil demand growth forecast to 730,000 barrels per day (bpd), citing escalating trade tensions, particularly from U.S. President Donald Trump’s tariff policies, and retaliatory measures. This marks the slowest growth rate since 2020, and excluding the pandemic, the lowest since 2019. Reuters
The IEA attributes half of the downgrade to weakening demand in the United States and China, with Asian export-driven economies also affected. In addition, the agency predicts a further decline to 690,000 bpd in 2026 amid economic fragility and rising electric vehicle (EV) usage. Reuters
