Global markets rebounded Monday after President Donald Trump reversed his confrontational stance on China, easing fears of an escalating trade war. In a weekend post on Truth Social, Trump assured investors that “it will all be fine,” signaling a softer diplomatic tone after his earlier 100% tariff threat rattled both traditional and cryptocurrency markets.
The reassurance came just days after Trump’s surprise tariff announcement on Chinese goods triggered a wave of selling across global equities, commodities, and crypto assets. The president’s new message emphasized cooperation rather than confrontation, calling Chinese President Xi Jinping “highly respected” and dismissing the trade turmoil as temporary.
“He doesn’t want Depression for his country, and neither do I,” Trump wrote. “The U.S.A. wants to help China, not hurt it.”
The shift in tone immediately improved global risk sentiment, helping stabilize prices after a volatile end to the previous trading week.
Crypto Markets Stage Strong Rebound
Cryptocurrencies were among the biggest beneficiaries of Trump’s diplomatic U-turn. According to TradingView data, Bitcoin (BTC) surged over 4% in 24 hours to trade near $115,448, while Ethereum (ETH) soared 10.5% to around $4,150.
The recovery followed a steep selloff that saw both assets lose double-digit percentages after the initial tariff announcement. Analysts say Trump’s latest comments restored investor confidence by signaling that U.S.-China relations may avoid a deeper economic rift.
Market highlights:
- Bitcoin rebounds +4.2%, regaining key support near $115K
- Ethereum climbs +10.5%, extending weekend gains
- Traditional equity indices and commodities also tick higher
- Risk-on sentiment returns across Asian and U.S. futures
The turnaround also reflects broader relief in risk assets as traders unwind bearish positions built during last week’s panic.
Global Markets Welcome De-escalation
Trump’s shift from aggressive rhetoric to reassurance appears to have tempered fears of a full-blown trade conflict between the world’s two largest economies. The move brought a modest but widespread recovery across Asian equity markets, European futures, and U.S. tech stocks, which had suffered steep losses following the tariff announcement.
Meanwhile, India’s offer to lower tariffs on select U.S. goods added to the positive tone, reinforcing the sense of improving global trade sentiment. Still, Trump has not formally rescinded his tariff order on Chinese imports, leaving some uncertainty about the policy’s long-term direction.
For now, investors are embracing the relief rally. Trump’s message—“Don’t worry about China, it will all be fine”—has cooled diplomatic tensions and revived cautious optimism across both traditional financial and digital asset markets.
Analysts note that while volatility may persist, the worst of the tariff-driven panic appears to have passed, giving traders a breather after a turbulent week.