In Asia, stocks jumped Thursday morning, with Japan’s Nikkei 225 skyrocketing 8.8% almost immediately after trading began. Australia’s ASX 200 also jumped more than 6%, and South Korea’s Kospi increased by more than 5% during the opening session. 

Taiwan (China) led gains in the region, with the Taipei Index rising 9.2% just 5 minutes after trading began. In Hong Kong (China), the Hang Seng Index rose 2.69%, while the Shanghai Composite Index saw a modest jump of 1.29%, despite the US’s recently announced 125% tariff on China’s imports. 

Some world leaders have responded positively to the US’s tariff pause, including Canadian Prime Minister Mark Carney, who called it a “welcome reprieve for the global economy.” Canada is one of the few that previously clapped back with a 25% retaliatory tariff on the US’s automobiles. 

Meanwhile, Friedrich Merz, likely Germany's next chancellor, said President Trump's pausing of tariffs for 90 days was evidence that a united European approach had a positive effect. Just hours before the pause was announced, EU leaders voted for a set of retaliatory measures to counter the tariffs imposed by the US on steel and aluminum. 

President Trump’s decision to impose a 125% tariff on Chinese imports, however,  escalates a high-stakes confrontation between the world's two largest economies. As it stands, it will be difficult for the US and China to de-escalate tensions, said former US Ambassador to China Gary Locke. "I don't expect the Chines to make the first move. Perhaps it will take a neutral intermediary or former Prime Minister to engage in some shuttle diplomacy, because this trade war with China will hurt both the consumers and workers on both sides of the Pacific," he said. 

In a video call on Tuesday, China’s Commerce Minister Wang Wentao discussed with European Trade and Economic Security Commissioner Maros Sefcovic restarting talks on trade relief and negotiations on electric vehicle minimum price commitments, according to a Chinese ministry statement.