Markets surged Wednesday after President Donald Trump announced a temporary 90-day suspension of most “reciprocal” tariffs, easing pressure on global trade and investor sentiment. The announcement triggered immediate gains across crypto and equities—though tariffs on Chinese goods were simultaneously hiked to a steep 125%, maintaining strain on U.S.-China trade relations.
Bitcoin jumped 4.6% within the hour, hitting $81,300, while Ethereum climbed to $1,600—up 6.1%. XRP spiked over 10% to trade above $2.00, according to CoinGecko data, as traders reacted to easing geopolitical risk.
The bullish momentum extended into equities. The S&P 500 and Dow each rose more than 5%, while the Nasdaq soared over 8% in intraday trading—marking one of its strongest single-day moves in recent months. The relief rally came amid mounting concerns that prolonged trade aggression could tip the U.S. into a recession.
Trump’s tariff pause, viewed by some analysts as a tactical retreat, has provided short-term breathing room for both markets and policymakers. However, with China still in the crosshairs, long-term uncertainty around global supply chains and trade policy remains unresolved.
Trump Spares Most Tariffs—But Hits China Hard
In a post on Truth Social, Trump confirmed that during the 90-day pause, a reduced tariff rate of 10% would apply to imports from U.S. trading partners—excluding China.
China, he emphasized, would remain under pressure. Effective immediately, all Chinese imports are now subject to a 125% levy, escalating the trade standoff just as Beijing retaliated with its own 84% tariffs on U.S. goods.
The move introduces both relief and risk: while markets rallied on the news of reduced uncertainty, the selective nature of the pause underscores that U.S.-China hostilities are far from resolved.
“I think now the market understands that everything they saw last Wednesday was a ceiling, and now we have a temporary floor,” said U.S. Treasury Secretary Scott Bessent.
“In my 35 years in the market, I always wanted certainty, and now I think we’ve got some certainty.”
Investors, for now, appear to welcome that clarity—even as the geopolitical backdrop remains tense.
General Crypto Market Rebounds
The broader crypto market saw a swift recovery by Wednesday evening, with total market capitalization climbing 3.1% to $2.63 trillion, according to CoinGecko. While still below last week’s $2.74 trillion peak—recorded just before Trump’s initial tariff announcement—the rebound helped ease widespread investor anxiety.
Treasury Secretary Bessent emphasized that the White House’s reversal wasn’t driven by market volatility but by diplomatic feedback.
“It was about the measured response from our allies, who have been engaging in good faith,” Bessent said.
The market reaction underscores how tightly risk assets—including digital currencies—are now tethered to global policy moves. Recent swings make it increasingly clear that crypto no longer operates in isolation; macroeconomic headlines and geopolitical developments have become key price catalysts across the board.
As the dust settles, investors appear to be recalibrating expectations—treating Trump’s tariff pause as a temporary reprieve rather than a resolution. But with capital rotating back into both equities and digital assets, the appetite for risk is slowly returning—for now.
Quick Facts
- President Trump announced a 90-day pause on most tariffs while raising Chinese import tariffs to 125%.
- Bitcoin surged 4.6% to $81,300 shortly after the announcement.
- Major U.S. stock indices and crypto-related stocks posted strong intraday gains.
- Total crypto market cap rose 3.1% to $2.63 trillion, easing investor anxiety after weeks of volatility.
