President Donald Trump has attempted to calm global tensions and market fears. Last Friday, Trump’s decision to impose a 100% tariff on Chinese goods sent shockwaves across financial markets.
Trump’s Softer Tone on China Tariff Sparks Market Rebound
In a new post shared on X via his Truth Social account, Trump reassured Americans that relations with China remain stable, insisting that “it will all be fine.” The president praised Chinese leader Xi Jinping, calling him “highly respected” and suggesting that China’s recent economic troubles were only temporary. “President Xi just had a bad moment,” Trump wrote.
“He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!” His remarks came days after the 100% tariff announcement that caused a massive crypto market crash, signaling a softer tone aimed at restoring calm following the trade escalation.
Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!! President DJT
(TS: 12 Oct 12:43 ET)…
— Trump Truth Social Posts On X (@TrumpTruthOnX) October 12, 2025
The change in tone have directly affected the mood in the market. According to TradingView data, Bitcoin price recovered by more than 4% in 24 hours and now stands at approximately $115,448. In addition, Ethereum shot up by approximately 10.5% and trades within the $4,150 region.
The traditional and crypto markets that had incurred huge losses after the tariff shock were recording some recovery after Trump posted.
Reassurance by Trump Cools Tariff-Driven Panic in Global and Cryptocurrency Markets
This reversal indicates the recent remarks by Trump is a de-escalation between the two largest economies of the world. The reassurance, after days of doubt, has helped stabilize overall risk sentiment. It was especially evident in digital assets that had been battered by worries of a steeper decline in global markets.
The shift of Trump from aggressive tariff rhetoric to a reconciliatory tone has caused a short-term respite in the cryptocurrency markets. A related development saw India respond to Trump’s tariff stance by offering cuts on U.S. goods, helping Bitcoin rebound.
However, Trump is yet to announce an alteration on the tariff on products from China. His reassurances have only provided a much-needed pause after few days of turbulence.
His message “Don’t worry about China, it will all be fine” has softened diplomatic tensions. Also, it has helped reignite cautious optimism across both traditional and digital markets, signaling that the worst of the tariff-driven panic may be over.
