Trump Announces Tariff Strategy Shift, Markets Surge Amid Mixed Signals

On the morning of April 10, 2025, U.S. President Donald Trump unveiled a significant adjustment to his tariff strategy. In a surprising move, he announced a 90-day "pause" on tariffs for 75 countries, reducing the rate to a uniform 10% during this period. However, this policy shift was accompanied by an immediate escalation in trade tensions with China, as Trump imposed a 125% tariff on Chinese imports effective immediately.

The unexpected policy change triggered a powerful bullish response across U.S. stock indices, crypto-related stocks, and major cryptocurrencies. Key indices witnessed dramatic gains: the Nasdaq surged by 12%, the Dow Jones climbed 7.87%, and the S&P 500 jumped 9.51%. Individual stocks also saw remarkable growth, with Tesla up 22%, Apple rising 15%, and Nvidia gaining 18%.

Crypto-related companies experienced a similar rally, with Marathon Digital (MARA) soaring 17.02%, Strategy surging 24.76%, and Coinbase jumping 19.65%. The cryptocurrency market mirrored this enthusiasm, as Bitcoin (BTC) rose by 8.37% back to 83,000, Ethereum (ETH) by 13.24%, Solana (SOL) by 11.74%, XRP by 13%, and the TrumpCoin (TRUMP) token gaining 7%.

This wave of optimism reflected a collective sigh of relief among investors, who had been concerned about a broader trade war. However, the sharp escalation in tariffs targeting China left lingering uncertainties. Some industry experts warned against premature optimism.

New York-based Oxford Economics Chief Analyst John Canavan noted Trump's ambiguous phrasing:"The way President Trump worded this makes it not entirely clear if we actually have a pause or if we just have lower reciprocal tariffs at 10%," suggesting that markets may have overreacted to unclear intentions. Meanwhile, Mark Hackett, the chief market strategist from Philadelphia National Investment Management Group also cautioned that "8% rallies in 20 minutes in the Nasdaq aren't a heck of a lot healthier than 8% declines."

Further uncertainty surrounds the Chinese yuan's exchange rate and China's potential retaliatory measures. Arthur Hayes, the co-founder of BitMEX, highlighted these unresolved risks, stating that the yuan's trajectory could play a pivotal role in shaping global market responses.