Tariff Rollercoaster: Trump Grants 90-Day Pause for Most, Escalates with China

US President Donald Trump's aggressive tariff strategy has injected significant volatility into global markets.

Earlier this week, over $1 billion was liquidated from crypto markets amidst fears of escalating trade tensions.

False rumours of tariff relief briefly sent markets soaring, adding over $1 trillion in value—underscoring investor anxiety over a potential US recession driven by protectionist policies.

Tensions escalated further last night when Trump imposed a 104% tariff on Chinese imports, prompting an immediate decline in crypto prices.

The drop deepened after China issued its own retaliatory measures.

But in a surprising reversal today, Trump raised tariffs on China again—to 125%—while simultaneously easing pressure on other nations.

In a post on Truth Social, Trump announced the tariff hike on China, citing its disregard for international trade norms.

At the same time, he introduced a 90-day delay on new tariffs for other countries and reduced tariff rates to 10% for nations that refrain from retaliatory actions.

He penned:

“China has been taking advantage of the United States and other nations for too long. The days of ripping off the U.S.A. are over.”

Commerce Secretary Howard Lutnick confirmed he was present during the drafting of the message.

Treasury Secretary Scott Bessent followed with a pointed statement at a White House press briefing, cautioning countries against retaliation and promising that those open to negotiation would be "heard and potentially rewarded."

Currently, over 75 countries are engaged in discussions with US officials over trade issues, including currency manipulation and non-tariff barriers.

During this 90-day window, the US will apply a temporary 10% reciprocal tariff on nations willing to cooperate.

Markets Sees Respite After Trump’s 90-Day Tariff Pause News

Capital markets are riding a wave of extreme volatility, with sharp swings driven largely by Trump’s shifting stance on tariffs.

In recent weeks, trillions in market value have been erased and regained as investors react to each new announcement—or reversal—on trade policy.

On 7 April, speculation that Trump might pause tariffs sparked a dramatic market rally.

The Dow Jones surged over 2,000 points, its largest single-day gain in five years, while the S&P 500 jumped nearly 7%, adding $2 trillion in value.

The VIX, Wall Street’s “fear gauge,” spiked above 60—the highest since the yen carry trade collapse of August 2024—before retreating to 33.62, still signalling heightened uncertainty.

Investors, eager for relief from prolonged trade turmoil, responded swiftly.

The rally extended to crypto and tech, sectors that had taken a beating in early 2025.

Tesla, a key barometer of market risk appetite, soared 20%, clawing back recent losses linked to Elon Musk’s controversial political moves.

Robinhood jumped 23%, Coinbase rose 20%, and MicroStrategy—now rebranded as Strategy—surged 25%.

The NASDAQ followed suit, buoyed by renewed confidence in high-growth tech stocks.

The market’s reaction underscores just how sensitive capital flows remain to geopolitical developments.

With a temporary tariff pause in place, traders have gone risk-on again—but for how long?

Crypto Prices Go Green

The global cryptocurrency market saw a swift resurgence on Wednesday, rebounding above a $2.7 trillion market cap after Trump unveiled a major revision to his contentious tariff policy.

It is currently at $2.62 trillion, a 9.33% increase in the last 24 hours.

The announcement, which included a pause on tariffs for non-retaliating nations, injected a wave of optimism across digital assets and reignited bullish sentiment.

Bitcoin (BTC) surged 5.6% to $81,636 within an hour of the news, signalling renewed momentum and fuelling speculation of a potential push toward the $100,000 milestone.

By 9 April, BTC had climbed nearly 9% to retest the $83,000 level, recovering most of its early-week losses.

As of now, it trades at $82,156.75, marking a 7.3% gain over the past 24 hours.

Altcoins followed suit, with Ethereum and Ripple’s XRP leading the charge—both posting double-digit gains that outpaced Bitcoin.

ETH rose 12.04% to $1,643.01, while XRP jumped 13.37% to $2.01, driven by a recalibration of market risk and a renewed influx of liquidity.

Other notable performers include Cardano (ADA), Avalanche (AVAX), and Sui (SUI), each recording daily gains of 10% or more.

While the rally signals renewed confidence and a shift in market tone, many digital assets remain below their all-time highs—reminding investors that, despite the rebound, recovery is still in progress.

Trump Mocks World Leaders, Says They're 'Dying' for Deals

At a Republican fundraising gala on Tuesday night, 8 April, Trump confirmed the implementation of sweeping new tariffs, just hours before a significant hike on Chinese imports took effect.

Addressing a room of House Republicans, Trump boasted that foreign leaders were “calling us up, kissing my ass” in pursuit of trade agreements—a remark that drew laughter from the crowd.

He went on further by mocking foreign leaders:

“Please, please, sir, make a deal. I’ll do anything.”

In the same speech, Trump took aim at members of his own party who have urged Congress to assert greater control over international trade policy, dismissing their calls with characteristic bravado.

Trump declared:

“Let me tell you, you don’t negotiate like I negotiate.”

The event underscored Trump’s unapologetically personal approach to global trade, even as tensions with China—and within his own ranks—intensify.

Tariffs on Pharmaceuticals Next on Trump’s Agenda

In a significant development, Trump has announced plans to introduce what he describes as "major" tariffs on imported pharmaceuticals.

He told the audience:

“We’re going to be announcing very shortly a major tariff on pharmaceuticals. And when they hear that, they will leave China.”

Speaking to reporters aboard Air Force One, he emphasized that these tariffs would be set at an unprecedented level and are expected to be unveiled "in the near future."

If enacted, this decision could represent a pivotal change in the global pharmaceutical landscape.

For years, countries, including the US, have maintained minimal or no tariffs on finished medicines, adhering to a 1995 World Trade Organisation agreement designed to keep drug prices affordable.

Trump Changes Tune as Fast as We Breathe; What Will Happen Next?

Trump’s tariff strategy remains unpredictable, leaving numerous questions unanswered.

While his announcement specifically referenced China’s retaliation, he grouped other countries together, raising uncertainty about how he will approach markets like the EU, which have also responded with retaliatory measures.

As analyst Joe Wiesenthal noted, Trump’s tariff threats have already introduced significant economic volatility, creating uncertainty and disruption in global markets.

With China as his primary target, it remains unclear whether additional nations will face tariffs exceeding 10% after the 90-day delay expires.

Trump’s message hinted that countries willing to negotiate might avoid harsher penalties, signalling a strategy aimed at pressuring Beijing while keeping trade avenues open with other partners.

Despite market optimism for the moment, the focus now shifts to China’s response and whether the 90-day period will yield meaningful progress.

Lutnick reaffirmed President Trump’s commitment to addressing global trade imbalances, emphasizing that his administration is poised to secure what could be the most significant trade agreements in history.

Will Trump extend tariffs to other nations?

Will traditional allies further distance themselves from the US?

These unresolved questions could complicate long-term economic stability.