Gold, silver, Bitcoin, and equities rally as White House softens trade stance with most countries, raises pressure on China
Markets around the world breathed a sigh of relief on Wednesday afternoon after U.S. President Donald Trump announced a surprise 90-day suspension on most reciprocal tariffs, signaling a strategic pivot in the intensifying trade war. The announcement sent a shockwave of optimism through global financial markets, driving sharp rallies in stocks, cryptocurrencies, and precious metals.
Posting on his social media platform, Trump stated that the United States would temporarily reduce tariffs to a 10% baseline on goods from over 75 nations. The move was reportedly in response to widespread outreach from countries seeking trade negotiations with the U.S.
“I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff… also effective immediately,” Trump wrote.
However, the president made clear that China would not benefit from the easing of trade tensions. In fact, tariffs on Chinese imports were hiked to a staggering 125%, citing Beijing’s continued disregard for global trade norms.
“China has shown a lack of respect to the world’s markets… the days of ripping off the U.S.A. are over,” Trump added.
Markets Respond With Explosive Gains
The announcement triggered an immediate and dramatic reaction across financial markets:
- S&P 500 and Dow Jones surged over 6% within 15 minutes.
- The Nasdaq Composite jumped 6.5%, recouping recent tech sector losses.
- Bitcoin (BTC) rallied 3.3%, rebounding from recent declines.
- Gold prices, which had already hit a new all-time high of $3,099, briefly dropped on waning safe-haven demand, but quickly rebounded to trade near $3,091.80, posting a 3.67% daily gain.
- Silver also saw a sharp uptick, rising over 4% to trade at $30.95, doubling earlier gains.
Treasury: ‘Negotiation Was the Goal’
Speaking from the White House shortly after the announcement, Treasury Secretary Scott Bessent confirmed the move was part of a calculated strategy.
“This is about bringing countries to the negotiating table,” Bessent said. “More than 75 nations are now engaging with us — and for them, we’re lowering tariffs to a fair 10%.”
However, Bessent stressed that China remained a major outlier, referring to it as “the largest trade violator” and justifying the elevated 125% tariff rate.
“It’s about bad actors,” he stated. “China has chosen escalation over resolution.”
What’s Next?
While markets welcomed the news with enthusiasm, analysts warn that volatility could persist as global players digest the implications. The pause in tariffs may open the door for progress in trade talks, but the sharp escalation with China could fuel further uncertainty in Asia-Pacific markets.
As it stands, gold and Bitcoin continue to attract inflows as investors hedge against geopolitical risks, even amid a sharp rebound in equities.
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