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- Bitcoin drops to $79,800 as Trump acknowledges short-term tariff pain, but expects long-term trade benefits.
- Trump open to extending tariff pause if trade talks fail, warns tariffs may rise again after 90-day break.
- Stocks struggle, but the S&P 500 rebounds with its largest gain since 2008, while Bitcoin retraces some gains.
As reported by a CNBC livestream, Trump said at the Cabinet meeting on Thursday that his steep tariff plans will now pose some problems in the short-term period. But he justified the policy, saying this was part of correcting the imbalance in international trade that has persisted over the years.
Trump assured the people that the situation can only get worse during transition but he was optimistic that the outcome would be better for the nation. The remarks took the form of affirms at a time there is growing apprehension over his stand on trade issues.
Tariff Pause Extension
He also spoke of the readiness to increase the duration of the 90-day halt on his so-called “reciprocal” tariffs. He proposed that if he fails to get favorable trade relations with his counterparts in the United States. Tariffs could go back to the previous higher levels from which they are currently reduced. In response to the question regarding the possibility of extending the pause, Trump said, “We’ll have to see what happen”.
Chicago Federal Reserve Bank President Austan Goolsbee warned that the US economy is likely to face unfavorable conditions similar to those of the COVID-19 period. Goolsbee pointed to reduced optimism about the economy and increased concern in the district. He said that a negative shift could extend to other risks affecting the economy.
Bitcoin’s Decline Amid Recovery
The Wall Street Journal report provided more information concerning Trump’s trade policies. The report explained that Trump has agreed to minimise a short-term shallow recession to prevent a longer period of deeper recession. However, as the market conditions got tougher, especially in terms of treasury yields and bonds. The president was forced to reverse some of his protective tariffs.
This policy was suggested by the National Economic Council Director, Kevin Hassett; the stock market bounced back on April 9th. The S&P 500 had its biggest one-day advance since 2008, which is good news to the investors. Nevertheless, Bitcoin maintained the trend indicated by wider market fluctuations even amid the recovery period.
The price of Bitcoin was down on Thursday at $79,800, being recorded in the market. The digital money, which rose earlier in the week, reversed some of the gains. The retreat occurred while major US stock markets were on the decline. With a drop of 3.46%, the S&P 500 had a bad day, along with the Nasdaq losing 4.31% and the Dow shedding 2.50%, indicating a bad time for stocks for every shareholder.
