Sea of green as media (and everyone except China) win Trump reprieve
Australian stocks have spiked with the opening of ASX following US President Donald Trump’s 90-day reciprocal tariff pause. Media stocks have also benefited, with the Unmade Index reversing heavy losses of the past few days.
On opening at 10am, the S&P/ASX200 index rose almost 5% (4.91%) wiping out falls in the past five days. The Unmade Index, which is comprised of 14 Australian media stocks, also rose close to 5% in early trading. Note that News Corp is tracked but not included in the index given its global nature and size.
The Unmade Index in early trading Thursday
The rally came about after Trump posted on his social network Truth Social overnight (Australian time) that he was pausing reciprocal tariffs on 75 nations. Because these nations had opened negotiations with the US, Trump said he was lowering their tariff rate to the now-standard 10%.
While Australia’s position did not change — it was already only facing the 10% tariff – the resulting rebound in global markets had a powerful impact at the opening of the ASX this morning.
Trump announced his intention to increase China’s tariff to 125% in the same post as the global reprieve. The full text of the post is republished below.
In an extraordinary signal to the market four hours before the market-moving post, Trump wrote “THIS IS A GREAT TIME TO BUY!!!” ending with the DJT stock code of Truth Social’s parent company, which he owns.
S&P/ASX200 in early trading (ASX)
The full text of Trump’s post:
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 U.S.A., and other Countries, is no longer sustainable or acceptable. Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!
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