Bullish Sentiment for Crypto: Trump's Latest Statement on China Tariff and Jerome Powell

Former President Donald Trump is once again at the center of financial headlines, following his recent comments about revising tariff policies on China and clarifying his stance on Federal Reserve Chair Jerome Powell. The statements, delivered during a week of heightened speculation, have rippled through global markets—and crypto investors are taking notice.

As traditional markets wrestle with mixed signals from Washington, some analysts suggest that these developments could trigger renewed bullish sentiment in the crypto space. But what exactly did Trump say, and why are digital assets potentially poised to benefit?

Read also : Trump Says He Never Plans to Fire Jerome Powell! Market Sentiment Becomes Mixe

Trump Suggests Cuts to China Tariffs Amid Economic Uncertainty

In a notable pivot, Trump revealed that the sweeping tariffs imposed on Chinese imports during his second term are likely to be reduced. Initially, the administration implemented a 145% tariff on select Chinese goods, citing threats to national security and economic sovereignty. However, the former president now suggests that a rollback is in the works.

“We’re not keeping it at 145%, but it won’t be zero,” Trump said during a press conference, signaling a strategic shift while still retaining negotiating leverage.

According to insiders, the White House is considering a tiered tariff system. This would include moderate tariffs (around 35%) for non-sensitive goods and steep duties (100% or more) on imports tied to U.S. security interests. The phased rollout of this structure could span up to five years, providing long-term clarity for global trade participants.

The remarks from Trump triggered a sigh of relief on Wall Street and encouraged crypto bulls, who often see political and economic instability as fertile ground for decentralized alternatives.

Powell Controversy Eases: Trump Denies Firing Plans

Adding fuel to the media fire, Trump also addressed swirling rumors that he intended to remove Federal Reserve Chair Jerome Powell. Over the past weeks, Trump had sharply criticized Powell’s monetary stance, particularly his reluctance to cut interest rates further.

But during his Tuesday statement, Trump clarified, “That’s a media creation. I have no intention of firing Jerome Powell.”

Behind the scenes, however, sources indicate that legal advisors had explored whether the president could legally dismiss Powell “for cause.” Ultimately, officials including Treasury Secretary Scott Bessent warned Trump that such a move could destabilize markets and backfire politically.

By walking back the threat and maintaining Powell in his position, Trump helped cool tensions—at least temporarily. Still, the broader message remains clear: Trump believes the Fed should cut rates further, and he’s not shy about using public pressure to push that view.

Read also : Trump Dinner Agenda Sends TRUMP Coin Price Up Over 40%

Why Crypto Markets May Turn Bullish on Trump’s Latest Moves

From a crypto perspective, the developments around tariffs, Trump, China, and Powell all paint a picture of uncertainty in traditional finance. History has shown that in times of monetary instability, capital often flows into digital assets like Bitcoin and Ethereum, viewed by some as hedges against inflation and centralized control.

Lower tariffs on China could reduce input costs for U.S. businesses, but also signal weakness in Trump’s hardline trade posture. At the same time, ongoing debates about the Fed’s independence highlight the fragility of monetary governance in the U.S.

Crypto investors see these moments as pivotal. If inflation rises due to relaxed trade barriers, or if the Fed bends to political pressure, demand for decentralized and censorship-resistant assets could surge.

Moreover, Trump’s influence over financial narratives remains strong. Any further comments about central banks, regulation, or digital currency could have near-instant impact on crypto pricing.

FAQ

What did Trump say about China tariffs?

Trump confirmed he’s considering cutting the 145% tariffs on Chinese goods, possibly implementing a tiered system over five years.

Did Trump try to fire Jerome Powell?

Trump denied intentions to fire Powell, calling it a media exaggeration, though reports suggest internal legal reviews took place.

Why is crypto reacting to this news?

Uncertainty around trade and Federal Reserve policy tends to boost interest in decentralized assets like crypto, seen as hedges against traditional economic instability.