U.S. President Donald Trump has backtracked on his earlier stance regarding tariffs on China, declaring that the recently announced 100% duties “will not stand.” The announcement came during an interview on Fox Business, marking a swift shift in tone just a week after the tariffs sparked global market anxiety and a sharp downturn in crypto prices. When asked if the tariffs would remain, Trump responded with a firm “No,” adding that relations between Washington and Beijing “will be fine.” He also confirmed plans to meet Chinese President Xi Jinping in two weeks, expressing confidence in reaching a “fair deal.”
The president’s reversal momentarily eased tensions in both traditional and digital markets, with Bitcoin—the world’s largest cryptocurrency—recovering slightly from an intraday low of $105,000 to around $106,000 following his remarks. As of press time, the asset was trading at roughly $106,686, according to data from CoinMarketCap. The modest rebound provided short-term relief to traders after a turbulent week that saw massive sell-offs and liquidations across the crypto market.
Trump acknowledged that the tariffs were unsustainable but defended them as a strategic move to push China toward more equitable trade policies. His softened rhetoric has been viewed as an effort to calm investors after days of escalating economic tensions between the two largest economies. Analysts suggest that the abrupt policy shift could signal a broader attempt by the administration to stabilise markets ahead of ongoing trade negotiations.
The recent turmoil traces back to Trump’s initial tariff announcement last Friday, which triggered one of the largest crypto market crashes in months. Bitcoin tumbled to around $104,000, wiping out nearly $19 billion in value, according to The Crypto Times. The steep decline fueled widespread liquidations and amplified investor fears amid growing uncertainty in global markets.
Despite the volatility, some traders see the downturn as a potential buying opportunity. Data from the prediction platform Polymarket shows a 72% probability that Bitcoin could fall below $100,000 before the year ends. Yet, market optimists like BitMEX co-founder Arthur Hayes remain bullish, describing Bitcoin as “on sale” and urging investors to “buy the dip,” suggesting that further financial instability could eventually drive renewed capital inflows into crypto assets.
Trump’s unexpected climbdown appears to have injected cautious optimism into an otherwise rattled market, though whether this reprieve will last depends heavily on the outcome of his upcoming talks with President Xi.
