Trump’s 90-Day Tariff Truce Sends Stocks and Crypto Soaring, but China Bears the Brunt ⋅ Crypto World Echo
In a dramatic shift that jolted Wall Street into arally, President Donald Trump said he would temporarily suspend tariffs on manyU.S. trading partners while sharply increasing them on Chinese imports.
The move reversed course less than 24 hours aftersteep new levies had taken effect and triggered a global market rout. The WhiteHouse confirmed that tariffs on countries willing to enter negotiations wouldbe paused for 90 days, during which the U.S. aims to strike new trade deals.
Meanwhile, Trump raised tariffs on Chinese imports to125%, up from the 104% rate enacted just hours earlier, escalating tensionswith the U.S.’s largest economic rival, Trump announced on Truth Social.
Stocks Surge as Tariff Tensions Ease
U.S. equity markets surged on the news, with theS&P 500 gaining nearly 9% and the Nasdaq climbing more than 12%. The rallyfollowed days of losses driven by fears that aggressive tariffs would tip theeconomy into recession.
Bond yields, which had been climbing earlier in theday, retreated as investors recalibrated expectations. The dollar also regainedstrength, particularly against safe-haven currencies like the yen. In the digital asset space, Bitcoin reversed its downward momentum, rising 8% after the latest development.
Markets welcomed the tariff pause as a sign that theadministration might avoid all-out trade conflict with allies. However, forChina, the message was the opposite. The sharp increase in duties marks thelatest escalation in an increasingly unpredictable standoff. Trump’s sudden tariff reversal fits a broader patternof shifting trade positions that have left world leaders and investors uneasy.
“Based on the fact that more than 75 Countries havecalled Representatives of the United States, including the Departments ofCommerce, Treasury, and the USTR, to negotiate a solution to the subjects beingdiscussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation,and Non-Monetary Tariffs, and that these Countries have not, at my strongsuggestion, retaliated in any way, shape, or form against the United States, Ihave authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff duringthis period, of 10%, also effective immediately. Thank you for your attentionto this matter!” Trump said.
Flip-Flopping Fuels Uncertainty
“With all the craziness that this (US) administration seemsto like to create, we are seeing a lot of volatility, which is great fortrading,” commented Scott Sheridan, CEO of tastytrade, according to a report byfinancemagnates.com.
“We are seeing 100-point S&P moves on a daily basis,which is amazing for all trading and especially derivatives. So long as the VIXstays elevated relative to its average, I would expect the big swings tocontinue.”
Whether Trump’s 90-day pause leads to concrete tradeagreements or simply delays another round of tariffs remains uncertain. U.S.officials say negotiations could span economic, security, and foreign aidmatters, but no timeline has been offered. For now, markets are clinging to hopes of resolutiondespite the lingering risk of another sharp turn.
This article was written by Jared Kirui at www.financemagnates.com.
