Markets swing $2 trillion after fake tariff pause rumor

A false report claiming President Donald Trump was considering a 90-day pause on tariffs caused a brief $2 trillion surge in global markets on April 7 before being debunked by the White House.

The rumor, originating from a verified X account, falsely attributed the claim to National Economic Council Director Kevin Hassett following his Fox News interview.

The post suggested that Trump would pause tariffs for all countries except China, leading to widespread speculation amplified by CNBC and Reuters.

The S&P 500 jumped over 8%, the Nasdaq surged 9.5%, and the Dow Jones rose 7% within minutes, while Bitcoin briefly topped $80,000 with a 6.5% spike.

However, markets quickly reversed after the White House’s Rapid Response account labeled the claim “fake news.”

“I think the president is going to decide what the president is going to decide,” Hassett’s stated.

Trump later reinforced his tariff stance on Truth Social, threatening additional tariffs on China if it failed to address trading abuses.

Observers noted that the incident highlights market sensitivity to tariff-related developments.

“Even a lame 90-day delay sent markets soaring. This shows how much money is ready to move at a moment's notice,” Crypto YouTuber Lark Davis remarked.

Others speculated that such reactions might encourage Trump and his advisers to leverage tariff pauses strategically.

The episode underscores Wall Street’s volatility amid uncertainty surrounding Trump’s trade policies.

Analysts warn that similar misinformation could destabilise markets further as global trade tensions intensify.