The day before, Trump had just dropped the bomb of imposing a 104% tariff on China, exacerbating global stock market declines. Today, he issued another heavyweight announcement: Due to China's unfair trade practices, the United States will impose a 125% tariff on Chinese imported products, effective immediately. On the other hand, for over 75 countries that do not take retaliatory measures, he has set a 90-day tariff suspension period, currently only levying a 10% reciprocal tariff, aimed at encouraging trade negotiations.
Related Reading: 《104% Tariff Sparks US-China Trade War Panic, Can Bitcoin Hold the $70,000 Mark?》
After Trump's announcement, the stock market, which had been declining for several days, finally got a chance to breathe and rebound. The S&P 500 index rose over 9% within minutes, dramatically reversing the downward trend of the past few days, becoming the best-performing day for the S&P 500 since the 2008 financial crisis recovery. The US stock market value surged by $4 trillion in just 10 minutes. US tech giants across the board skyrocketed, with their total market value increasing by $1.85 trillion in just a few hours.
The crypto market also rebounded accordingly. According to CoinMarketCap, Bitcoin rose 8.42% in 24 hours, returning to $80,000, Ethereum rose 13.89% in 24 hours, currently priced at $1,642, and SOL rose 12.38% in 24 hours, currently around $117. Other mainstream Altcoins saw even larger gains, with XRP, AVAX, SUI and other tokens rising over 10% in the CoinDesk20 index. Some Solana ecosystem meme coins rebounded, with VINE rising 44.6% in 24 hours, and FARTCOIN, POPCAT, GHIBLI and other meme coins rebounding around 50%.
In April 2025, protests erupted in over 1,300 towns across all 50 U.S. states, with millions of participants. Over 100,000 people gathered in Washington D.C., and cities like New York and Chicago had demonstrations exceeding 20,000 people. Protesters criticized tariff policies as "betraying the foundation of the United States" and accused them of raising living costs and exacerbating social divisions. The latest polls showed that Trump, who had been in office for less than three months, had already seen his approval rating drop to 46%, with over half the population questioning his policies.
Under this pressure, when asked by media why he decided to pause, Trump responded, "I think people have gone too far. People are becoming a bit impatient and scared."
Regarding the 90-day tariff suspension policy, as FX Executive Director Amarjit Sahota observed, "A 90-day pause will only bring more uncertainty to these 90 days." The negotiation results between the U.S. and 75 countries within 90 days, potential widening of differences that could trigger new sell-offs, the transmission effects of the U.S.-China tariff war, and its long-term impact on both economies and the crypto market remain uncertain.
This financial roller coaster triggered by Trump's tweet is not just about market sentiment, short selling, and policy fluctuations, but also a reminder of global investors' risk awareness. Information asymmetry is becoming the new norm in capital markets, and uncertainty is the most certain theme of this era. The 90-day pause seems more like a prelude to the next game, and we shall wait and see how it unfolds rationally.
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