A bogus news report about a potential pause in U.S. tariffs briefly sent global markets into a frenzy, adding trillions in value before reality set back in. While the story turned out to be false, it highlighted just how eager investors are for positive signals—and how fast they’re willing to react.
On April 7, a verified X (formerly Twitter) account named “Walter Bloomberg” posted that former President Donald Trump was considering a 90-day pause in tariffs for all countries except China. The account, which has over 850,000 followers, is not affiliated with Bloomberg News, but its post quickly gained traction.
The rumor was so convincing that CNBC mistakenly aired it as a banner headline, and Reuters amplified the claim, causing markets to spike.
How Markets Reacted to the Fake Tariff Pause
The market response was explosive:
- The S&P 500 jumped over 8% from its daily low
- The Nasdaq surged 9.5% in less than an hour
- The Dow Jones rose 7%, adding trillions in total market capitalization
- Bitcoin rallied 6.5%, briefly breaking above $80,000 before retracing
Shortly after the surge, the White House’s official “Rapid Response” account debunked the report. Markets quickly reversed, erasing most of the gains.
What the Incident Reveals About Investor Sentiment
Though the news was fake, the reaction shows how much cash is sitting on the sidelines—and how quickly it could flood back into markets given the right conditions.
Crypto influencer Lark Davis noted, “The market is ready to ape, even a lame 90-day delay sent markets soaring.” He added that a real set of trade deals with countries like India, Canada, and the UK could trigger an even more dramatic rally.
X user Geiger Capital agreed, saying, “That fake headline might actually give Trump, Navarro, and Lutnick more confidence to keep pushing this further. They now know that at any point they can announce a pause and the market will rally ~10% in a single day.”
What Kevin Hassett Really Said
The fake news was based loosely on a Fox News interview with Trump economic advisor Kevin Hassett. When asked about a potential 90-day tariff pause, Hassett gave a vague response:
“I think the president is gonna decide what the president is gonna decide. Even if you think there will be some negative effect from the trade side, that’s still a small share of GDP.”
In other words, no confirmation was given—only speculation.
Still, this episode underscores how sensitive markets are to trade policy rumors, and how quickly sentiment can shift based on perceived progress or resolution in U.S.-China trade talks.
