On April 9, 2025, US President Donald Trump announced a 90-day halt on heavy tariffs affecting most US trading partners, sparking a huge global market rally. The move, widely covered under the headline ‘Trump halts tariffs,’ sent shockwaves through global markets. However, China was left out, hit with a sharp 125% tariff increase as trade tensions grew. This move, called a negotiation strategy, has shifted market trends and crypto swings, raising big questions about future confidence and economic stability.
Market Reactions: Ups and Downs of Hope and Doubt
Right after Trump’s announcement, stock markets saw one of their biggest jumps since World War II. The S&P 500 rose 9.5%, the Nasdaq shot up 12.2%, and the Dow Jones gained nearly 3,000 points as investors cheered the temporary easing of trade fights. European and Asian markets also surged: the FTSE 100 jumped 6.2%, Germany’s DAX rose 8%, and Japan’s Nikkei 225 climbed 9%. Beaten-down sectors like tech and cars led the rebound, with Apple shares up 15% and the S&P 500 Auto Index hitting a record 21% gain.
But the rally hid deeper worries. Experts warned the 90-day halt is only a temporary pause, not a solution. Treasury Secretary Scott Bessent said talks with over 75 countries would be “custom” and tricky, leaving markets open to sudden policy changes. Meanwhile, China’s 84% tariffs on US goods, starting April 10, fueled fears of a divided global economy, risking tech supply chains and higher consumer prices.
Crypto’s Quiet Reaction: Steady Despite Economic Shifts
Cryptocurrencies, often seen as a hedge against traditional market volatility, experienced significant fluctuations in response to the evolving trade landscape. In the days leading up to the tariff pause, Bitcoin’s price declined amid escalating trade tensions, reaching a low of approximately 76,000 USDT on April 8. However, following US President Trump’s announcement, Bitcoin’s price surged by 6%, climbing back above 81k. Ethereum mirrored this trend, with its price increasing by nearly 13% to 1,662 USDT.
Crypto-related stocks also responded positively. Companies like Strategy (formerly MicroStrategy) saw their shares surge by 24%, while Coinbase experienced a 19% increase. This uptick reflects renewed investor confidence in digital assets amid the temporary easing of trade tensions.
However, the exclusion of China from the tariff pause introduces potential volatility for the crypto market. China’s significant role in cryptocurrency mining and manufacturing means that heightened tariffs could disrupt supply chains and impact the broader crypto ecosystem. Additionally, China’s retaliatory measures may influence global trade dynamics, indirectly affecting cryptocurrency markets.
Sentiment and Swings: What Comes Next
1. Short-Term Hope, Long-Term Doubt
The 90-day window offers hope for deals, but Trump’s trade moves are famously shaky. Markets will likely stay jumpy to news, with possible swings as deadlines near. Goldman Sachs dropped its recession prediction post-halt but warned drawn-out talks or failed deals could revive fears.
2. China as the Big Unknown
The US-China clash remains the top threat. With tariffs now at 125%, Beijing promises to “fight hard,” risking supply chain breaks and price hikes. Companies like Apple, which lost $640 billion in value during earlier tariff chaos, face major risks if China limits rare materials or tech production.
3. Sector-Specific Dangers
- Tech and Cars: Reliant on Chinese factories, these sectors could see profit cuts if tariffs stay.
- Energy: Oil prices edged up post-halt, but recession fears linger, with US crude near $60/barrel.
- Consumer Goods: Stores like Home Depot warned of price rises, calling tariffs a “forever tax” on shoppers.
4. Political and Moral Issues
Trump’s pre-announcement tweet telling investors to “buy” drew fire for possibly swaying markets. While the White House called it “calming,” ethics experts say it risks setting a bad example for leader influence on stocks.
5. Central Bank Tightropes
The Federal Reserve and Bank of England now face tougher choices. With bond yields steady post-halt, rate cuts are less pressing, but tariff-driven price hikes could muddy policy plans.
Conclusion: A Fragile Calm
Trump’s tariff halt brought a surge of short-term hope, but the calm is fragile. Investors should prepare for swings as negotiations unfold, especially with China left out of the pause. Crypto markets held steady, but with their ties to global supply chains and policy shifts, they’re far from immune.
As always, this article is not financial advice. Please do your own research (DYOR), and if you need a place to start, you can head over to blog.millionero.com for deeper insights. Once you’re ready to act, come trade spot and perpetual futures confidently on Millionero, where the markets never sleep.