Markets breathed a sigh of relief Wednesday as former U.S. President Donald Trump announced a 90-day suspension of new tariffs on countries that have refrained from retaliating against American trade policy—excluding China. The move offered a temporary de-escalation in the intensifying global trade standoff.
According to a post on Trump’s Truth Social account, the administration will implement a reduced 10% reciprocal tariff on most nations for the next three months. In stark contrast, tariffs on Chinese imports have been raised to 125%, effective immediately.
The news sparked a strong rally across risk-on assets. Bitcoin (BTC), which had hovered around $77,000 for much of the U.S. trading session, quickly surged above $81,000—gaining over 5.5% in 24 hours.
Ethereum (ETH) followed with an 8% jump to $1,600, while major altcoins like XRP, SOL, AVAX, LINK, HBAR, and SUI each rallied more than 10%, driving gains in the broader CoinDesk 20 Index.
Traditional markets also responded positively. The Nasdaq climbed 7%, and the S&P 500 jumped 8.8% as investors interpreted the move as a potential cooling of trade friction with key partners.
The market rally came hours after Trump posted: “It’s a great time to buy,” signaling confidence that his policy maneuver would stabilize investor sentiment. Though China remains a trade flashpoint, the tariff pause may help reduce volatility across financial markets—at least in the near term.
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