Donald Trump announced today that he’s instituting a 90-day pause on all tariffs except those on China. Bitcoin has surged over $80,000, while altcoins like XRP, Solana, and Cardano surged more than 10% in just minutes of the announcement.
The Dow Jones and stock market reacted similarly, surging by 2,000 points after the news. The US President has now added a total of 125% tariff on China, while pausing others.
Trump Reverses Tariff Plan
Since Donald Trump has made huge tariffs a cornerstone of his financial policy, the markets have reacted with massive uncertainty. For example, over $1 billion was liquidated from crypto markets this Monday, and false rumors of possible relief triggered more than $1 trillion in market gains.
In other words, the markets were very pessimistic that tariffs would cause a US recession. When Trump implemented 104% tariffs on China last night, crypto fell, and it fell again when China retaliated this morning.
Today, however, Trump has made a surprising reversal. Although he is increasing tariffs against China to 125%, he is repealing those on other nations.
This news immediately caused a substantial rally in the markets. At 1:30 PM Eastern Time, the Dow Jones responded by shooting upwards over 2000 points, and this was mirrored in other high-profile stocks.
The markets have been desperate for a form of relief, and it looks like it’s here.
Still, the erratic nature of Trump’s tariff strategy has left more than a few open questions. In his announcement, Trump only mentioned China’s retaliation strategy by name, lumping all other countries together.
However, a few crucial markets, like the EU, also retaliated. It is currently unclear how Trump will treat other actors, as China is his main target.
Open questions like this may continue to cause market uncertainty. As analyst Joe Wiesenthal pointed out, Trump has already caused a lot of economic chaos with his tariff threats alone.
Will he retaliate against nations other than China? Will former allies continue pulling away from the US? These live questions may frustrate long-term economic gain
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