rewrite this title White House to Scale Back Tariffs, Bitcoin Gains on Eased Economic Jitters – Decrypt

Bitcoin regained momentum Sunday and nudged up by as much as 2.7% following reports that the White House has signaled a more targeted approach to its April 2 tariffs, confirming it would likely omit sector-specific duties while still implementing “reciprocal tariffs” on major trading partners.

The crypto market saw higher gains amid reports on Sunday afternoon from Bloomberg and the Wall Street Journal that Trump’s administration is narrowing its tariff strategy.

Bitcoin traded above $86,700 by Sunday midnight, roughly twelve hours after the aforementioned reports emerged, showing resilience after volatile swings over the past week, which saw lows of $81,200.The alpha crypto is up 3.3% on the day, while the rest of the market has tracked up by 0.7% in total market cap, data from CoinGecko shows.

This shift from a broader tariff implementation to a more targeted approach has eased concerns about immediate economic disruption. 

Previous market fears had centered on Trump’s declaration of April 2 as “Liberation Day,” when he planned to impose sweeping tariffs across multiple sectors.

Citing Treasury Secretary Scott Bessent’s pronouncements last week, the WSJ reported that the administration is looking to have tariffs applied to “about 15% of nations with persistent trade imbalances with the U.S.”

It follows the Federal Reserve’s projections last week that it would hold interest rates steady. Meanwhile, two weeks before, the Consumer Price Index saw cooling numbers, marking 2.8% from February, which some investors are interpreting as signs of easing financial conditions. 

While tariffs do not directly impact Bitcoin and broader crypto prices short-term, Zach Pandl, head of research Grayscale, previously told Decrypt Trump’s trade policies are part of a larger trend, with Bitcoin being “swept up in broader macro uncertainty.”

This suggests that “higher policy uncertainty has caused investors to reduce portfolio risk across the board,” Pandl explained.

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

An additional 25% tariffs on E.U. goods was also proposed. Responding to these threats and singling out Trump’s crypto initiatives, an ECB official said Sunday last week that financial crises “often originate in the United States and spread to the rest of the world.”

Meanwhile, the same study cites Bloomberg Economics forecasting a reduction in U.S. GDP by up to 0.7% while increasing inflation by 0.4%, despite Trump’s claims that the tariffs, as economic measures, are designed to curb illegal immigration and address trade imbalances.

Edited by Sebastian Sinclair