Trump’s latest tariff shift may have just unexpectedly boosted the crypto market. On April 9, a sudden reversal of planned duties on tech products triggered a 9% surge in Bitcoin and a double-digit jump in US stocks.
While China was hit harder, most countries received a temporary break, raising questions about what this means for the global tech supply chain and whether crypto could continue to benefit from these economic power moves.
Tech Products Spared From Tariffs and What It Means for Crypto
Trump’s economic agenda has long focused on reducing the United States trade deficit, particularly with China. One of his main tools has been tariffs, import taxes intended to make foreign goods more expensive and drive consumers to purchase American-made alternatives.
Technology was a major target in this strategy, with products such as smartphones, laptops, semiconductors, and modems originally set to face higher import fees.
This raised concerns across the tech sector, especially from manufacturers and investors who feared the fallout on supply chains, production costs, and consumer prices.
But in a surprise decision on April 9, Trump chose to delay the rollout of these new tariffs. Most countries were given a 90-day pause, and tariffs were reduced to 10%, provided they did not retaliate with tariffs of their own.
The exception was China, which had previously imposed an 84% tariff on US imports. As a result, the US hit back with a 145% tariff on a wide range of Chinese tech goods.
This sudden shift had an immediate and visible impact. Bitcoin jumped 9% shortly after the announcement, while the S&P 500 also climbed over 10%. For crypto, this wasn’t just a reaction to the news, it was a reflection of how closely digital asset markets are tied to broader economic and geopolitical events.
When uncertainty around trade and inflation rises, investors often seek alternative assets that are decentralised and independent from national economies. Bitcoin, as the most well-known of these assets, tends to benefit most visibly from this trend.
Additionally, the exemption of key hardware components from tariffs could indirectly support crypto infrastructure. Mining operations rely on specialised chips, memory cards, and other electronics that are heavily imported.
If these products remain affordable, thanks to tariff relief, the operational costs for miners and developers running blockchain nodes or decentralised networks will be lowered. In short, fewer tariffs on tech can translate into more accessible crypto services.
Not everyone sees Trump’s tariff approach as a long-term strategy. Some, like macro trader Raoul Pal, describe it as a negotiation tactic rather than a strict policy shift.
Others, including long-time Bitcoin advocate Max Keiser, believe that while the move might bring short-term market relief, it does little to address the deeper financial challenges such as interest rates or bond yields.
Still, the response from investors shows that crypto remains highly sensitive to shifts in global trade and technology policy.
China Faces Higher Tariffs While Apple Shifts Production
While most of the world received temporary relief from Trump’s new tariff wave, China ended up facing stricter penalties.
The White House justified this by pointing to China’s earlier tariff actions against American goods. By raising duties on Chinese tech products to 145%, Trump sent a strong message that retaliation would be met with even tougher measures.
This decision has practical consequences for global tech firms, particularly those with deep manufacturing roots in China. Apple is a key example.
The United States is Apple’s largest market, and more than half of all smartphones sold there last year were iPhones. However, around 80% of those iPhones are made in China, with most of the remainder produced in India.
The increased cost of importing Chinese-made products could impact Apple’s pricing strategy and profit margins in the US.
As a response, Apple is accelerating its shift away from China. India and Vietnam have emerged as the top alternatives, with several reports suggesting that Apple is expanding its production facilities in both countries.
The goal is clear: to diversify its supply chain and reduce dependence on any single country, especially one embroiled in ongoing trade disputes with the US.
The implications for the crypto world are not limited to smartphones. Many critical components for mining rigs, servers, and blockchain infrastructure are sourced from China.
If tariffs remain high on Chinese electronics and firms relocate their manufacturing bases, the global tech supply chain could see significant restructuring.
This might result in more regional production hubs, which could eventually lower risks linked to geopolitics and make essential crypto hardware more resilient and widely available.
At the same time, this reinforces why some investors prefer decentralised financial systems in the first place.
Political tensions, supply chain disruptions, and sudden policy shifts can all destabilise traditional markets. Crypto offers an alternative that operates independently of such state-driven decisions.
In moments like this, when trade battles escalate and global markets respond sharply, Bitcoin and other digital assets often present themselves as attractive alternatives, not because they are immune to risk but because they are built on different foundations.
Conclusion
Trump’s decision to pause tariffs on key technology products created a ripple effect far beyond trade policy. It triggered strong reactions across stock and crypto markets and highlighted the growing overlap between geopolitics, global tech supply chains, and decentralised finance.
As tensions with China remain high and production shifts continue, crypto may see further interest from investors seeking protection from unpredictable economic policies. The tariff debate may not be about crypto directly, but its consequences are already shaping the space.