As market participants sense new hope, there has been a noticeable increase in cryptocurrency and stock prices at the weekly opening. The White House’s softer approach to tariffs appears to have created a positive atmosphere in the markets.
Relaxation in Customs Tariffs
Initially, the threat of tariffs led to significant declines in investment instruments. However, recent developments suggest that the Trump administration’s aggressive trade negotiations may be heading towards resolution. It is anticipated that exemptions from tariff implementations could be granted for certain countries, and sector-specific additional taxes might be postponed.
Trump announced an exemption for Hyundai just hours ago, and discussions with trade partners have been ongoing for days. If many countries reach an agreement with the U.S., the pressure on the market could ease. Previous statements indicated that the EU believed the U.S. was not taking negotiations seriously, but recent announcements suggest that retaliatory measures set to take effect in April have been shelved, indicating that negotiations are still in progress.
Surge in Cryptocurrencies
Particularly, the positive trend in significant stock indices at the start of the week indicates a prevailing sense of optimism in the markets. Bitcoin $87,699 has recorded a 3% increase in a day and a 15% increase over the year. This scenario seems to enhance investors’ expectations regarding regulations that may mitigate the impact of contentious parties.
In a note shared by Tobin Marcus from Wolfe Research, it is stated, “When sector-specific taxes are removed from the package in April, the maximum tax rates on a broader scale and targeted sectors will significantly decrease. While the threshold for the reciprocal tariff in April remains impressive, we expect the effects to be less intense despite a negative market reaction.”
Moreover, Trump mentioned the application of “secondary tariffs” on Venezuela and other countries procuring oil or gas from there through a post on Truth Social.
As stock indices generally trend upward, Bitcoin’s current trading price hovers around $88,013. The effects of the contentious regulations on the markets are being closely monitored.
It seems that the changing tariff policies and flexible approach have laid the groundwork for investors to act cautiously yet hopefully in an uncertain environment.