Stocks, Bitcoin Surge 3% as White House Narrows Tariffs

Digital assets and equities have surged at the start of the week, driven by renewed optimism following the White House's decision to narrow the scope of tariffs. This shift in policy has significantly eased market concerns about the potential economic impact of broad-based tariffs, leading to a surge in risk appetite.

Reports suggest that President Trump’s aggressive trade negotiations may be moving towards a smoother resolution. According to sources familiar with the matter, the White House is considering more targeted tariffs, with some countries being exempt and certain sector-specific levies being delayed. This approach is seen as a more measured response compared to the initial threats, which had sparked one of the worst stock market drawdowns in recent memory.

All major stock indices opened the week with significant gains, while Bitcoin (BTC) has seen a 3% increase on the day, bringing its value up 15% from its 2025 low near $76,500. This rally in digital assets reflects a broader return of risk appetite in the market, as investors respond positively to the easing of tariff threats.

Tobin Marcus of Wolfe Research noted that omitting sectoral tariffs from the April 2nd package significantly reduces both its aggregate scale and the maximum rate on targeted sectors. This more targeted approach is expected to mitigate the negative market reaction and lessen the concentrated impact on specific sectors.

However, President Trump announced on Truth Social that “secondary tariffs” would be placed on Venezuela and any country that purchases oil and/or gas from the country. The reasons cited include concerns about Venezuela's alleged actions of sending criminals to the United States.

Despite this announcement, the overall market sentiment remains positive, with Bitcoin trading at $88,013 at the time of writing. The narrowing of tariffs has also had a stabilizing effect on the USD, which had been drifting due to the tariff threat. This change in policy is seen as good news for the global economy, as it reduces the likelihood of widespread economic shocks.

The tech sector, in particular, has seen a notable rally, with shares of companies like Palantir jumping amid a broader rally among tech stocks. This reflects the market's overall sentiment, which has been buoyed by the White House's more flexible approach to tariffs.

The easing of tariff threats has also had an impact on gold, which has been trading steadily around $3,020. While gold is still supported in the $3,000 region, the easing of tariff threats has reduced some of the pressure on the precious metal.

The White House's decision to narrow the scope of tariffs is part of a broader reshaping of US trade policy, aimed at encouraging companies to reshore back to the US. However, analysts have noted that a 25% tariff may not be high enough to make supply chains untenable. The Trump administration would need to impose import taxes of perhaps 100% to 200%, as well as offer big government subsidies, to get companies to reshore their manufacturing.

The market's response to the White House's decision to narrow the scope of tariffs has been overwhelmingly positive, with both the stock market and digital assets rallying hard. This rally is a testament to the market's sensitivity to policy changes and its ability to respond quickly to new information. As the White House continues to refine its trade policy, investors and traders will be watching closely for any further developments that could impact the market.