President Donald Trump has announced a 90-day pause on most U.S. trade tariffs, triggering an immediate surge in cryptocurrency and global stock markets. The decision, which excludes China and a few specific trading partners, was revealed in a Truth Social post that quickly went viral.
The temporary suspension affects the majority of U.S. trade partners, with reciprocal tariffs reduced to 10% for the duration. Meanwhile, tariffs on Chinese imports have been aggressively hiked to 125%, following retaliatory tariffs from Beijing set to take effect Thursday.
Trump’s decision comes amid increasing global economic volatility, prompting a mixed reaction from analysts and market observers. While the increased tariff on Chinese goods highlights escalating tensions between Washington and Beijing, the broader tariff pause appears to be a calculated step to invite new negotiations.
“Based on the lack of respect that China has shown to the World’s Markets… the United States of America [will raise] the Tariff charged to China… to 125%, effective immediately,” Trump declared in his post.
Conversely, he expressed openness to discussions with nations not retaliating against the U.S., announcing the reduced 10% tariff and temporary pause. Trump emphasized the support he received from over 75 countries seeking diplomatic solutions around trade, currency manipulation, and tariff structures.
“This move signals that President Trump cares about trade and that we want to negotiate in good faith,” commented Scott Bessent, who was present during the statement’s drafting.
Commerce Secretary Howard Lutnick also confirmed his presence, calling it “one of the most extraordinary Truth posts of his Presidency.” in a post on X.
“Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency. The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction.” Lutnick said.
Following the news, global markets reacted sharply. Bitcoin jumped over 4%, climbing above $82,000, while Ethereum rose nearly 6% to reach $1,580. XRP also made impressive gains, rising almost 9% to hit $2.00.
U.S. stock markets mirrored the enthusiasm, with the S&P 500, Dow Jones, and Nasdaq all experiencing gains exceeding 5%. Traders and analysts are now watching closely to see if the rally will hold or correct as the situation unfolds.
However, it’s worth noting that the 10% universal tariff enacted last weekend still remains for trading partners outside Canada and Mexico, and Trump gave no indication of reversing it.
As of now, Trump has not laid out a long-term strategy following the 90-day pause. Bessent hinted at continued negotiations and said talks with countries like Vietnam are already underway.
“These are complicated negotiations,” Bessent added, noting that Trump’s bold tariff stance may pressure more countries to engage in deeper trade discussions.
