Bitcoin Surges to $82K as Trump Suspends Tariffs for 90 Days on Most Nations
Global Markets React Positively to Trump’s Bold Move Amid Trade Tensions
In a surprising turn of events, U.S. President Donald Trump announced a 90-day pause on tariffs for most countries, sparking a dramatic surge in both global stock markets and cryptocurrencies. The announcement came after days of market speculation and heightened tension surrounding trade wars between the U.S. and China. Bitcoin, the world’s leading cryptocurrency, saw its value skyrocket to an impressive $82,000, marking a new high for the digital currency.
Trump’s Tariff Pause and Market Reactions
Trump’s decision to halt tariffs for most nations, excluding China, was welcomed by investors across the globe. The move marked a significant shift from his previous stance, which had been characterized by a tough trade policy aimed at countering China’s practices. Under the new arrangement, Trump clarified that the pause would only apply to countries that do not retaliate. However, a 10% tariff remains in effect across the board during this 90-day period.
Trump’s announcement followed a tense week of escalating tariffs between the U.S. and China. China had recently raised tariffs on U.S. goods from 34% to 84%, prompting Trump to respond by defending his position, accusing China of unfair trade practices. Despite the tensions, the pause in tariffs sparked a rally on Wall Street, with the S&P 500 climbing by 8.51%, the Dow Jones gaining 7.27%, and the Nasdaq soaring by 10.77%.
This sudden market shift came after U.S. stocks had dropped by over 12% in just four days following Trump’s initial tariff plan, announced on April 2. The Volatility Index (VIX), which measures market uncertainty, dropped significantly from a peak of 60 on April 7 to 34.54 by the close of trading on April 9, signaling a reduction in market anxiety.
Cryptocurrency Prices Soar with Market Optimism
The cryptocurrency market also experienced a significant boost as Bitcoin saw its value surge from $75,000 to $82,000. Ethereum also enjoyed an uptick, rising from $1,400 to $1,600, as investors responded positively to the broader market optimism. Cryptocurrencies, long seen as volatile and speculative, gained renewed interest as a store of value in uncertain times.
Reactions and Strategic Implications
Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, who were present when Trump made the announcement, emphasized that the pause was a part of Trump’s broader strategy to ease trade tensions. Bessent noted that countries which chose not to retaliate against the U.S. would be “rewarded” in future negotiations. Trump’s own media company also saw a surge of over 20% following his enthusiastic message to the public, which ended with the phrase “THIS IS A GREAT TIME TO BUY!!! DJT.”
However, not everyone is optimistic about the long-term impact. Economists have expressed caution, with some warning that the pause may only serve to delay an inevitable recession. Joe Brusuelas from RSM US noted that the economic shocks the U.S. has faced could lead to a recession, while Goldman Sachs kept its 45% recession forecast unchanged. Moreover, Jake Colvin from the National Foreign Trade Council pointed out that despite the pause, a 10% tariff baseline remains, along with high duties on steel, aluminum, and possibly more sectors.
The China Factor: Ongoing Tensions
Despite the temporary suspension of tariffs, China’s response suggests that the trade dispute may not be over. Chinese officials have pledged to reduce reliance on U.S. goods and promote domestic consumption, signaling a willingness to escalate the trade war further. Wendong Zhang, an economist at Cornell University, noted that Chinese leaders appear to have broader public support this time, making the dispute more complicated than during the 2018–2019 trade war.
As the situation continues to evolve, the world will be watching closely to see whether this 90-day tariff pause leads to more permanent trade resolutions, or if it’s just another step in an ongoing global tug-of-war.
Conclusion: A Market in Flux
President Trump’s bold decision to suspend tariffs has caused a dramatic shift in global markets, sparking a rally in both stocks and cryptocurrencies. While the move has brought short-term relief, concerns about a future recession and continued trade tensions, especially with China, leave many wondering what the next phase of this economic saga will bring. As the world watches, the impact of these developments will continue to unfold in the coming weeks.
