Trump Administration Signals Targeted Tariff Approach, Bitcoin Gains 2.7%

TLDR

• White House signals more targeted approach to April 2 tariffs, leading to Bitcoin gaining 2.7%
• Bitcoin traded above $86,700 Sunday, showing resilience after volatile swings last week
• Trump hinted at “flexibility” in tariff plans, particularly regarding China
• Global markets showed positive reaction with S&P 500 futures adding 0.9% on news of targeted tariffs
• Economic forecasts show reduced GDP expectations for US (2.2% for 2025) and globally (3.1% for 2025)

Bitcoin and global stock markets rallied Monday following reports that the Trump administration plans to implement more targeted tariffs than previously expected. The news eased fears of widespread economic disruption that had weighed on financial markets in recent weeks.

Bitcoin regained momentum Sunday with a 2.7% increase after reports emerged from Bloomberg and the Wall Street Journal about the White House’s narrowed tariff strategy. The cryptocurrency’s resilience pushed it above $86,700 by Sunday midnight.

This represents a 3.3% gain for the day. The broader crypto market followed suit with a 0.7% increase in total market cap, according to data from CoinGecko.

The positive movement comes after a volatile week for Bitcoin. The cryptocurrency had dipped as low as $81,200 before recovering on the tariff news.

President Trump previously declared April 2 as “Liberation Day,” when he planned to impose sweeping tariffs across many economic sectors. The administration now appears to be taking a more measured approach.

Treasury Secretary Scott Bessent indicated last week that tariffs would apply to “about 15% of nations with persistent trade imbalances with the U.S.” This more focused strategy has helped ease market concerns about widespread economic impacts.

Trump Signals Flexibility

During Oval Office remarks, Trump hinted at some flexibility in his approach. “I don’t change. But the word flexibility is an important word,” Trump said. “Sometimes it’s flexibility. So there’ll be flexibility, but basically it’s reciprocal.”

The president specifically mentioned China in his comments. He suggested there would be room for “talk” on trade issues with the country and expressed hope to meet with Chinese President Xi Jinping soon.

Global stock markets also responded positively to the news. Europe’s Stoxx 600 index opened 0.5% higher on Monday, with gains led by tariff-sensitive sectors like commodity producers and automakers.

S&P 500 futures added 0.9%, breaking a four-week streak of losses. This positive movement came as markets had been on edge ahead of Trump’s April 2 deadline.

Daniel Murray, chief executive officer of EFG Asset Management in Zurich, explained the market reaction: “Markets have taken some comfort from news that the next stage of the Trump administration’s tariff regime will involve targeted tariffs.”

Murray added that “this raises the possibility that some sectors and countries may fare better than others, helping explain market optimism.”

The Federal Reserve recently held interest rates steady, which along with cooling Consumer Price Index numbers (2.8% in February), has been interpreted by some investors as signs of easing financial conditions.

While tariffs do not directly impact Bitcoin prices in the short term, Zach Pandl, head of research at Grayscale, told Decrypt that Trump’s trade policies are part of a larger trend. Bitcoin has been “swept up in broader macro uncertainty,” according to Pandl.

A Bloomberg study shows that President Trump’s implemented or threatened tariffs have affected at least $1.8 trillion in global trade. These include 25% duties on worldwide steel and aluminum, 25% on non-compliant USMCA goods, and an additional 10% on Chinese imports.

Despite the market rally, economic forecasters have reduced their growth outlooks. The Organisation for Economic Co-operation and Development revised its U.S. GDP forecasts from 2.4% to 2.2% for 2025 and from 2.1% to 1.6% for 2026.

Global GDP was also revised lower, from 3.3% to 3.1% in 2025 and 3.3% to 3.0% in 2026. The OECD cited “higher trade barriers in several G20 economies and increased geopolitical and policy uncertainty” as factors “weighing on investment and household spending.”

The European Union announced it was delaying its retaliatory tariffs on U.S. goods to allow for “additional time for discussions with the U.S. administration.” However, the EU maintained it was not seeking to “diminish the impact of our response.”

In commodities markets, oil edged higher, benefiting from the prospect of more targeted trade tariffs. Gold traded around $3,022 an ounce, just off record highs reached last week.

The latest developments suggest the White House is refining its approach to tariffs, balancing its trade objectives against potential market and economic impacts. Markets appear to be responding favorably to this more nuanced strategy.