- Trump pauses tariffs for 75+ countries for 90 days, but hikes China tariffs to 125%.
- U.S. stock market adds $4T in minutes; S&P 500 up nearly 7%.
- Bitcoin hits $82K with 6.6% surge; $75M in shorts liquidated.
US President Donald Trump declared a 90-day pause of reciprocal tariffs with over 75 countries, sending shockwaves through traditional and crypto markets. The move, intended to help ongoing trade negotiations, resulted in a behemoth rally on Wall Street and propelled Bitcoin into record territory at $82,000.
Only 24 hours after Trump’s blanket reciprocal tariff policy took effect, a measure that had left markets in shock and trade war anxieties on the rise the President seemed to have had a change of heart. Laying praise on constructive talks and avoiding retaliatory measures by more than 75 countries, Trump formalized the moratorium in a Truth Social post.
Based on the fact that more than 75 countries have denounced representatives of the United States and that those countries have not, at my strong urging, reciprocated in any way, shape, or form against the United States, I have ordered a 90-day PAUSE, Trump said.
Trump pauses tariffs for the World, But Not for China
While extending an olive branch to the rest of the world, Trump came hard at China. He declared an emergency hike in tariffs on Chinese goods to 125%, up from the earlier announced 104%. The action came in the wake of what he termed as China’s “lack of respect” for global markets.
“Sometime, hopefully not too far away, China will come to realize that the cheating of the USA, and other countries, is no longer sustainable or acceptable,” Trump said.
China hit back by applying an 84% duty on US imports, restricting exports by US businesses, and filing a new case with the World Trade Organization (WTO), ratcheting up tensions between the world’s two largest economies
Markets React: The $4 Trillion Stock Value Rally
Wall Street exploded with news of Trump’s tariff timeout. Within an unbelievable 15 minutes, the US stock market had a staggering $4 trillion. value added. This sent the S&P 500 soaring. nearly 7%, while tech stocks recorded their biggest one-day rally in years.
Analysts credited the rally to investor relief, as the halt indicated a possible cooling-off in what had been poised to be an all-out global trade war.
Bitcoin Breaks
The crypto community was not exempt. Bitcoin rallied 6.6% of $82,000, taking advantage of investor optimism and new risk appetite. Over $75 million worth of BTC shorts were liquidated in the previous hour alone, according to market data.
The total crypto market capitalization is $2.5 trillion, still modest by today’s $4 trillion rise in traditional equities yet increasingly prominent as virtual assets further make their way into mainstream global financial systems.
The European Union, having plans to impose a 25% retaliatory tariff on US goods next week, can now pause with the 90-day reprieve. Canada’s trade ministry also showed a potential standstill on countermeasures following the announcement.
But the US-China trade war remains volatile, and Beijing does not incline to give an inch. China’s Ministry of Commerce declared, If the US insists on further increasing its economic and trade restrictions,. China has the firm will and vast resources to fight to the end.
Trump’s tariff break might be a strategic move to defuse global tensions and focus the trade war on China alone. With the stock market rallying and Bitcoin posting all-time highs. The announcement has, thus far, restored optimism to markets.
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