#TariffsPause

Markets Rally as Trump Announces Tariff Pause: Relief Bounce or True Recovery?

In a dramatic move, President Trump announced a 90-day pause on all tariffs, with the notable exception of China, where tariffs were sharply increased to 125%. The markets responded with a powerful surge, adding an astonishing $5.5 trillion to the U.S. stock market's total value. Meanwhile, Bitcoin — often seen as a barometer for financial risk sentiment — skyrocketed back above $93,000, reigniting enthusiasm across the crypto space.

The immediate market reaction suggests a powerful relief rally. After months of uncertainty driven by trade wars, interest rate volatility, and global economic slowdown fears, this announcement provided a much-needed breather for investors. Risk assets across equities, crypto, and commodities saw major inflows as confidence momentarily returned.

However, whether this marks the start of a sustained recovery remains uncertain. While easing tariffs boosts short-term optimism, the heightened tensions with China could continue to weigh heavily on global trade. Furthermore, broader economic fundamentals, such as corporate earnings, employment data, and inflation pressures, will need to show consistent improvement to sustain this rally.

In the short term, expect continued volatility as markets digest this policy shift. In the longer run, unless diplomatic breakthroughs occur with China and macroeconomic data turns solidly positive, this may turn out to be more of a temporary bounce than the beginning of a full recovery.