April 2025 — U.S. stocks rallied sharply following President Donald Trump’s announcement of a 90-day pause on select international tariffs, a move seen as a temporary reprieve amid ongoing global trade tensions. Shares of companies tied to travel, transport, and automotive manufacturing saw significant gains, including Delta Air Lines, American Airlines, Lucid Motors, Ford, and Rivian.
The announcement, made on April 9, included a reduction of reciprocal tariffs to 10% for most countries, excluding China, which remains a target of possible tariff hikes up to 125% in retaliation for what Trump described as “unfair trade practices.”
Key Market Movers: Travel and Automotive Stocks Climb
The tariff pause quickly rippled through the markets, restoring investor confidence in sectors that had been weighed down by uncertainty over trade policy.
- Delta Air Lines (DAL) surged 23.4%, reversing recent losses tied to a weaker Q1 2025 outlook. Despite a drop in domestic demand, the airline has leaned on strong performance in its premium and international segments.
- American Airlines (AAL) jumped 18.9%, buoyed by optimism that a cooling in trade tensions could stabilize global travel and cargo routes.
- Lucid Group (LCID) rose 11.4%, reflecting renewed investor enthusiasm for EV stocks amid easing concerns about international supply chain tariffs.
- Rivian Automotive (RIVN) gained 10.9%, as the electric vehicle sector reacted positively to potential relief from global parts and battery material tariffs.
- Ford Motor Co. (F) added 8.2%, benefiting from bullish sentiment across the traditional auto manufacturing sector.
The S&P 500 and Dow Jones Industrial Average also posted notable gains on the back of the announcement, as investors interpreted the move as a signal that the White House may be taking a more cautious approach to trade escalations—at least in the short term.
Delta: Rebound Amid Volatility
Delta Air Lines has experienced considerable stock swings in recent months, with more than a dozen 5%+ moves in the past year. The company’s shares dropped 14.3% in March following lowered revenue guidance for Q1 2025, citing weaker-than-expected domestic demand and macroeconomic headwinds.
Despite that, Delta reported continued strength in international travel and its SkyMiles loyalty program. Its stock, currently at $44.59, is trading 35.4% below its 52-week high. Still, long-term investors have seen notable returns—with a $1,000 investment five years ago now worth approximately $1,828, according to market data.
A Temporary Calm in Trade Tensions
While the tariff reprieve has lifted markets, experts caution that the pause may be short-lived. Trump’s exclusion of China from the tariff easing, combined with warnings of future tariff hikes on Chinese imports, indicates that geopolitical trade risks remain high.
Market analysts suggest the rally could represent an overreaction, but also an opportunity. Sectors like EV manufacturing and commercial aviation, which are deeply intertwined with international trade, remain especially sensitive to policy shifts.
Investor Takeaway
This surge highlights how sensitive markets remain to trade policy signals. With tariffs likely to remain a bargaining chip in global negotiations, investors should stay informed and cautious, particularly in sectors most vulnerable to shifting international dynamics.
As the situation evolves, companies exposed to global supply chains and trade regulation—such as airlines, carmakers, and EV firms—will remain in the spotlight.
Sources:
- Market data via Nasdaq and Bloomberg (April 2025)
- White House Press Briefing, April 9, 2025
- Delta Air Lines Q1 2025 Guidance via Investor Relations
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