Markets Fluctuate Over Trump Tariff Hoax: Evidence of Investor Sensitivity
A false report regarding U.S. President Donald Trump’s plan to temporarily suspend import tariffs for 90 days triggered a sharp surge in financial markets.
Although the information later turned out to be untrue, the incident highlighted how sensitive the markets are to circulating rumors.
Spread of Misinformation and Its Impact
According to Coinvestasi, the news originated from a post by a verified account named Walter Bloomberg on platform X on Sunday (April 7, 2025).
The post claimed that Trump was considering a 90-day tariff pause for all countries except China, quoting an interview with economic advisor Kevin Hassett.
Although the account has no official affiliation with Bloomberg News, the information quickly gained widespread attention, especially after CNBC aired it in banner format and Reuters amplified the coverage.
As a result, the S&P 500 index jumped more than 8% from its daily low, the Nasdaq climbed 9.5% in under an hour, and the Dow Jones surged 7%, adding trillions of U.S. dollars to the stock market capitalization.
On the other hand, Bitcoin’s price also surged, rising 6.5% from around US$76,000 to US$80,000 in a short time—only to correct after the U.S. White House confirmed the information was false.
The White House, via the Rapid Response 47 account on platform X, denied the report, stating that the 90-day tariff pause was “FAKE NEWS.”
Clarification from the Economic Advisor
In an interview with Fox News, Hassett was asked whether President Trump was considering a 90-day tariff pause.
He gave an unclear answer, saying that the final decision rested with the President.
“The President will decide whatever he wants to decide,” he said, while adding that the potential negative impact of trade policy was minimal to the national GDP.
Hassett also criticized the exaggerated narrative around tariff policies, calling it “irresponsible rhetoric.”
New Tariff Threat Against China
Shortly after the false post was taken down, Trump issued a new threat via the Truth Social platform, this time targeting China.
“If China does not roll back the 34% hike for long-term trade violations before April 8, the U.S. will impose an additional 50% tariff starting April 9,” he wrote.
Market Response to the Rumor
Even though the news turned out to be fake, the event revealed how ready the markets are to respond to positive sentiment.
Crypto YouTuber Lark Davis noted that the market showed a strong desire to react to any steps perceived as easing trade tensions—even if it was just a temporary delay.
“The market is ready to react anytime. Even weak news about a 90-day tariff delay can send the market flying,” Davis said. “Imagine if there were an agreement with major players like India, Canada, and the UK. There’s a lot of money just waiting to pour in.”
A similar comment came from an X account called Geiger Capital, which stated that this event could give Trump more confidence to use moments like this in the future.
“They now know that simply announcing a ‘temporary pause’ will trigger a positive market reaction. This could be an effective negotiation tool,” Geiger Capital wrote.
Conclusion
This incident underscores how sensitive financial markets are to rumors and circulating information, especially those related to global trade policies.
Investors and market participants are encouraged to be more cautious in responding to unverified information to avoid making investment decisions based on inaccurate news.
