U.S. President Donald Trump unexpectedly announced a 90-day pause on new tariffs. The decision triggered a sharp rebound in the stock and crypto markets after a week of sell-offs driven by trade threats from the White House. Although existing tariffs remain in place, investors viewed the freeze as a temporary break in the trade escalation.
Markets Recover Some Losses
Following the tariff pause, Bitcoin rose by 9% to $82,500, later adjusting to $82,000 within the day. Ethereum gained 11% over the past 24 hours, climbing to $1,614. XRP rose by 10,19% to $2.
The total crypto market capitalization increased by 7.41%, reaching $2.61 trillion, according to Coinmarketcap. The top gainers included Fartcoin (FARTCOIN), up 42,45%, and Flare (FLR), up 27,81%.
The U.S. stock market also responded strongly: the S&P 500 index surged by 9,5%, marking its biggest one-day gain since October 2008.
The Other Side of the Rally
The crypto price spike led to massive liquidations in the derivatives market. According to Coinglass, 131,555 traders were liquidated in 24 hours, totaling $476.62 million. The largest losses were in Bitcoin ($180.11 million) and Ethereum ($134.91 million).
Tariff Policy Remains Harsh
It is worth noting that the pause applies to everyone except China, which still faces tariffs of up to 125%. The existing 10% tariff on most imported goods remains in effect. Tariffs on automobiles, steel, and aluminum were not discussed.
Washington justified the tougher stance by citing Beijing’s alleged failure to follow global market rules. Trump offered to meet with the Chinese president and promised a “very good deal” if China is willing to compromise. In response, Chinese authorities said they are open to talks but warned they would “fight to the end” if the U.S. refuses to make concessions.
While talks have yet to begin, the yuan fell to its lowest level in 18 years. Meanwhile, Vietnam and Canada agreed to discuss new trade terms with the U.S. The European Union is considering plans to increase purchases of American gas, citing tariff pressure from the U.S.
Pause as a Political Maneuver
Markus Thielen, head of research at 10X Research, views the delayed tariffs as a temporary measure. He warns that structural issues remain and will surface in the upcoming U.S. corporate earnings season.
Meanwhile, investment firm Bitwise reiterated its December forecast of $200,000 for Bitcoin by year-end. According to CIO Matt Hougan, the current economic instability triggered by Trump’s actions could work in favor of cryptocurrencies. He believes the administration is deliberately pushing the dollar toward weakness, even if it undermines its status as the world’s reserve currency.
Not Just a Trade War
Billionaire and venture investor Chamath Palihapitiya stated that Trump’s plan is not only an attempt to reshape foreign trade but also a radical domestic maneuver. In an interview with podcaster Andrew Schulz, he called the tariff strategy the biggest economic redistribution in the U.S. in decades.
According to him, the new tariffs are not only aimed at China but also at restoring America’s industrial base. Palihapitiya noted that since 2000, the U.S. has lost over 5 million manufacturing jobs, and dependence on imports has made the country vulnerable. The pandemic, war in Ukraine, and Taiwan conflict have shown that the U.S. cannot supply itself with key goods — from masks to microchips.
He explained that the tariffs have two goals — to shift the global balance of power and return strategic industries to American control. The new plan includes tariffs of 10% on everyday goods, 20% on industrial components, and 25–60% on high-tech products.
The potential total revenue from tariffs could reach $750 billion annually. According to the investor, these funds could be used to reduce the tax burden on the middle class.
Companies that rely on imports now face a choice — pay tariffs or relocate production back to the U.S. As for the latter, Trump believes now is the perfect time.
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