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Forbes
09-04-2025
- Business
- Forbes
Bitcoin Surges Above $80,000 After Markets Experience ‘Amazing Jump'
Bitcoin prices climbed sharply today as markets processed the latest tariff updates. Bitcoin prices rallied today, climbing over 10% in under 24 hours after President Donald Trump's announcement that he would 'pause' tariffs caused an 'amazing jump' in the global asset markets, according to analyst Tim Enneking. The digital currency rose to roughly $83,000 this afternoon, according to Coinbase data from TradingView. The benchmark S&P 5oo index and the Dow Jones Industrial average also experienced sharp gains, rising more than 9% and 7% during the day, according to data from Google Finance. In addition, many altcoins underwent notable price increases, rising between 10% and 30% in the space of 24 hours, CoinMarketCap figures show. The TikTok influencer who goes by Wendy O commented on the situation, emphasizing 'across the board' gains in these cryptocurrencies. When asked whether Trump's policy change triggered the latest gains in bitcoin, Enneking, managing partner of Psalion, stated via email that 'Yes, the 90-pause was hugely important and the sole proximate cause of the amazing jump across almost all markets in two ways.' 'The first was what we just witnessed: immediately concerns regarding the absurdly high tariffs have now been removed (with the major exception of China, where the tariffs actually got worse),' Enneking said after Trump posted via social media network Truth Social that while he would start imposing a tariff of 125% on China, tariffs on other countries would drop to 10%. 'More importantly, however, was the fact that Trump and most (but not all) of his administration's representatives have insisted that the tariffs were immutable and not a bargaining tool,' he stated. 'No one really believed that in their heart of hearts, knowing Trump's negotiating 'style,' but the fear that tariffs were 'here to stay come may' was starting to gain traction – and markets were pummeled as a result," Enneking added. 'Now we know it is possible to persuade Trump to back down, which means that we're back to tariffs as a bargaining tool. The sign of relief from seeing a solid example of that fact can literally be heard around the world!' he said. When asked whether Trump's tariff announcement was the cause today's bitcoin gains, Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, offered a similar take. 'Yes, we agree that Bitcoin's rally reflects the broader risk-on mood sparked by Trump's tariff pause, which markets interpreted as a temporary easing of trade tensions," he said via email. However, he emphasized that bitcoin has been displaying a high correlation to other risk assets like stocks. This development contrasts with earlier times, when the digital currency didn't follow the price movements of assets like stocks. 'Despite being touted as a hedge or store of value, Bitcoin continues to behave like a high-beta risk asset—often outperforming during bursts of macro optimism," said DiPasquale. "Today's move was less about crypto fundamentals and more about a broad shift in sentiment across equities and digital assets.' Brett Sifling, wealth manager for Gerber Kawasaki Wealth & Investment Management, also offered his perspective on the situation, offering his views via email. 'Earlier today, Trump announced a 90 day pause on most of the tariffs besides China. This caused an immediate spike in risk-on assets across most markets, including Bitcoin, that resulted in one of the 10 best percentage returns day in the history of the S&P 500,' he stated. 'This is likely a combination of short-term oversold conditions, short covering, and reassessment after the worst-case scenario was already being priced in,' said Sifling. 'We expect the volatility is likely to continue, as this story is continuing to develop," he concluded.
Miami Herald
05-03-2025
- Automotive
- Miami Herald
Trump opens the door to exempting eggs from tariffs levied on Canada and Mexico
First autos, next eggs? The White House said Wednesday that President Trump could consider a carve-out exempting eggs from the tariffs he's placed on Mexico and Canada, following the announcement he granted a temporary reprieve from taxes on automobiles after pressure from the U.S. industry. 'The president is open to hearing about additional exemptions. He always has open dialogue,' said White House press secretary Karoline Leavitt, responding to a question regarding the breakfast staple. The partial but abrupt pullback of his economic plan is an example of the high amount of volatility embedded in Trump's trade policy that has already spooked business leaders and roiled the Dow Jones Industrial average. But it also signaled a certain degree of flexibility in the president, who sees tariffs as a negotiating tool for more border security but is open to persuasion by titans of U.S. industry. The U.S. imports about $43 million in eggs from Canada and prices have risen sharply to nearly $5 a dozen domestically — nearly double the cost from 2023. RELATED CONTENT: Trump boasts he's accomplishing great things. So why is the economy so sluggish? Democrats have been warning that Trump's tariffs will increase prices on most goods and the stock market initially reacted negatively to his plan, before rebounding Wednesday on the news of the relief. 'Remember, about 40% of the [car] parts that are in American cars come from Canada. But also housing, and groceries and food. Beef, dairy, eggs,' said Senate Democratic Leader Chuck Schumer. Leavitt confirmed at Wednesday's White House press briefing that after speaking with leaders from the big three U.S. automakers — Stellantis, Ford and General Motors — Trump permitted a one-month tariff exemption from any vehicle imports coming from Canada or Mexico, 'so they are not at an economic disadvantage.' Trump's 25% tariffs on products from Canada and Mexico went into effect hours before the president's address to a joint session of Congress Tuesday night. Leavitt reiterated that 'reciprocal tariffs will still go into effect on April 2,' leaving automakers four weeks to figure out production plans, supply chain adjustments and future investments. Trump believes tariffs will make the U.S. more prosperous by forcing companies to locate physical plants back domestically, reinvigorating the country's manufacturing base. He leaned into this argument during his congressional address Tuesday night, mentioning the word 'tariff' 20 times, according to the official transcript. 'They will come because they won't have to pay tariffs if they build in America,' Trump asserted of businesses operating outside the country. 'Tariffs are about making America rich again and making America great again … There'll be a little disturbance, but we're ok with that.' The private, nonpartisan Peterson Institute calculates Trump's tariffs on Canada, Mexico, and China would cost American households an average of $1,200 per year. And even Commerce Secretary Howard Lutnick acknowledged in an interview Wednesday that 'there will be some high prices on certain products' for a short period of time. But critics said that explanation isn't reassuring given how long it will take for tariffs to have Trump's intended effect. 'I would adjust my stock portfolio to assume that we are going to see significant global trade disruptions,' said Matthew Yglesias, a liberal policy analyst who runs the Slow Boring Substack.
The National
31-01-2025
- Business
- The National
Trump tariffs: Canada, China and Mexico to be hit with levies on Saturday, White House says
The US on Saturday will begin imposing President Donald Trump's tariffs on China, Canada and Mexico, the White House announced, as America's largest trading partners brace for the economic impact. White House press secretary Karoline Leavitt told reporters Mr Trump will enact a 10 per cent tariff on China, framing the decision as a retaliatory move for 'the illegal fentanyl that they have sourced and allowed to distribute into our country'. Mr Trump will also enact 25 per cent tariffs on Canadian and Mexican imports. 'These are promises made, and promises kept,' Ms Leavitt said. The US dollar gained following the announcement, particularly against the Mexican peso and Canadian dollar. The S&P 500, Dow Jones Industrial average and Nasdaq Composite indices all turned negative following the tariff announcement while yields on the US 10-year Treasury rose. Canada, China and Mexico are Washington's three largest trading partners, comprising 41.1 per cent of total trade last year, according to the US Census Bureau. The tariffs would end months of speculation on what trade policy under Mr Trump's administration would look like after he spent much of the 2024 election campaign promising to impose levies on other countries. But his tariff plans have been met with consternation from other leaders including Canadian Prime Minsiter Justin Trudeau, who vowed to take retaliatory action. 'If the tariffs are implemented against Canada, we will respond. We won't relent until tariffs are removed and, of course, everything is on the table,' he said during a meeting of the Council on Canada-US Relations in Ontario. The departing Canadian leader said he hoped that Mr Trump would reconsider the levies, and that he would be prepared to pursue a 'purposeful, forceful but reasonable, immediate' response if not. Mexican President Claudia Sheinbaum did not specify details on how she would respond, but said her government would do so with a 'cool head'. Central bank officials in China, where the yuan has weakened to a 16-month low, had already intervened in January to stabilise the currency by announcing a bill sale of 60 billion yuan in Hong Kong to discourage speculative trading. The tariffs are expected to weigh on Canada's economy, Mr Trudeau said. His warning echoed comments from the Bank of Canada earlier this week, which released an assessment that showed a 25 per cent tariff scenario would weaken economic growth and lift inflation in both Canada and the US. The Trump tariffs have also caused the Federal Reserve to slow the pace of its interest rate cuts due to the uncertainty over their impact on the economy. The US central bank held rates steady on Wednesday.
