Global markets responded sharply after President Donald Trump announced a major escalation in his trade stance toward China, while offering a temporary reprieve to other countries.
Bitcoin is trading at $81,636 up 5.6% in 24 hours following the announcement.
In a post on his Truth Social platform, Trump declared that tariffs on Chinese imports would rise to 125% effective immediately, citing what he described as China’s lack of respect for global markets.
“China has been taking advantage of the United States and other nations for too long,” Trump wrote. “The days of ripping off the U.S.A. are over.”
90-Day Pause on New Tariffs for Other Countries, Says Trump
At the same time, Trump revealed a 90-day pause on new tariffs for other countries, stating that more than 75 nations have engaged with U.S. trade officials to negotiate on issues such as trade barriers, currency manipulation, and non-monetary tariffs.
As a result, he has authorized a reduced reciprocal tariff of 10% for those countries during the pause period.
Trump Triggers Market Rally
Markets appeared to rally on the news, with the S&P 500 jumping over 5.5% and the tech-heavy Nasdaq soaring over 8%. Investors seemed encouraged by the temporary easing of global trade tensions, despite the dramatic hike in tariffs against China.
It remains unclear whether any countries beyond China will face higher-than-10% tariffs once the 90-day pause expires.
Trump’s message did not specify further details or potential next steps, though the implication is that trade partners who avoid retaliation and continue negotiations may avoid harsher measures.
The move is seen as a high-stakes gamble by Trump to pressure Beijing while maintaining stability with other key trading partners. With markets reacting positively for now, attention will likely shift to how China responds and whether the 90-day window leads to any breakthroughs.
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