U.S. President Donald Trump said on Wednesday that he will allow a 90-day pause on the implementation of “reciprocal” tariffs against most countries, prompting cryptocurrency and stock prices alike to spike in the immediate aftermath.
The price of Bitcoin jumped 4.6% in less than an hour to $81,300, while Ethereum spiked 6.1% to $1,600, and XRP surged 10% to $2.03, according to crypto data provider CoinGecko.
Stock indices also surged on Trump’s declaration, with the S&P 500 and Dow both climbing in excess of 5%, while the tech-heavy Nasdaq surged over 8%.
"I have authorized a 90-day PAUSE, and a substantially lowered reciprocal tariff during this period, of 10%, also effective immediately," Trump wrote on Truth Social, noting that China is excluded from the tariff pause.
The president said on Wednesday that Chinese goods will now face 125% levies “effective immediately,” heightening the tit-for-tat between Washington and Beijing in recent days. On Wednesday, China unveiled 84% imports on U.S. goods.
“I think now the market understands that everything they saw last Wednesday was a ceiling, and now we have a temporary floor,” U.S. Treasury Secretary Scott Bessent said. “In my 35 years in the market, I always wanted certainty, and now I think we’ve got some certainty.”
Trump’s trade war has sent risk assets plummeting in recent weeks on fears that tariffs could pinch pockets among U.S. consumers while also weighing on growth across the globe.
Bessent said that the White House’s about-face on most reciprocal levies was not a result of falling stock prices, but rather a decision the president reached based on the “response by mostly our allies, who have been operating in good faith.”
The crypto market itself rose 3.1% in value, hitting $2.63 trillion, according to CoinGecko. When Trump unveiled sweeping tariffs a week ago, the crypto market was worth $2.74 trillion.
Editor's note: This story was updated after publication with additional details.