Markets Whipsaw After False Hopes of Trump’s 90-Day Tariff Pause Stir Brief Rally
Markets saw a sharp but short-lived rally after rumors swirled about a potential 90-day pause on incoming tariffs from former President Donald Trump—only for those hopes to be quickly dashed by an official White House denial, triggering a return to market turmoil.
The drama unfolded after Kevin Hassett, a senior advisor to Trump, gave an ambiguous statement during a televised interview on Monday. When asked if Trump was considering a temporary suspension of his proposed tariffs, Hassett replied, “The president is gonna decide what the president is gonna decide … even if you think there will be some negative effect from the trade side, that’s still a small share of GDP.”
This non-committal phrasing was enough to ignite speculation that a tariff reprieve might be on the table. Within minutes, both traditional and crypto markets surged. The S&P 500 leaped 6%, and Bitcoin rebounded to touch $80,000 after briefly falling below that level amid broader liquidation pressures. Altcoins like XRP also rallied, jumping nearly 10% to reach $2.
However, the optimism was short-lived. The White House swiftly issued a statement denying any plans for a 90-day tariff pause. Markets reversed gains nearly as quickly as they had risen. The volatility left traders and analysts alike scrambling for clarity, underscoring how reactive investors remain to policy developments—especially when they concern U.S.-China trade tensions.
As it stands, Trump’s latest round of tariffs is scheduled to go into effect on April 9. An additional 50% levy on Chinese goods is also reportedly in the works. This escalation is fueling fresh concerns about the global economy, with analysts warning that the extended trade dispute could dampen growth prospects and continue destabilizing both equity and crypto markets.
The crypto space, already reeling from over $1 billion in liquidations, has been especially sensitive. Bitcoin’s sharp swings and altcoin turbulence reflect broader market anxiety as traders react not to policy itself, but to headlines, leaks, and political signals—some real, some speculative.