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.
About The Author
More Stories
Cryptocurrencies slide ahead of Monday, as the federal shutdown clock ticks down.
According to Bitwise CIO Matt Hougan, bitcoin has the potential to climb to $6.5 million over the next two decades
Anatomy of BTC’s selloff: the dollar’s bottom marked bitcoin’s top.