TLDR
- A false headline claiming Trump would pause tariffs for 90 days caused markets to gain $2.4 trillion before crashing when debunked
- The rumor originated from a misinterpreted Fox News interview with Kevin Hassett and spread through social media
- Major media outlets including CNBC and Reuters amplified the fake news before White House denied it
- Markets showed extreme volatility with S&P 500 swinging dramatically, indicating investor sensitivity to tariff news
- Bitcoin briefly jumped 6.5% to over $80,000 during the market surge before falling back
A false news report claiming that US President Donald Trump was considering a 90-day pause on tariffs caused a dramatic market swing on April 7, temporarily adding $2.4 trillion in value before erasing those gains when the rumor was debunked.
The misleading headline, which read “HASSETT: TRUMP IS CONSIDERING A 90-DAY PAUSE IN TARIFFS FOR ALL COUNTRIES EXCEPT CHINA,” referenced White House Economic Council Director Kevin Hassett. The rumor spread rapidly through social media and major news outlets before being officially denied by the White House.
The incident unfolded within a 30-minute window, highlighting extreme market sensitivity to tariff news. The S&P 500 reversed early losses of 4.7% to gain 3.4% in just 10 minutes after the rumor circulated, then crashed again when the White House issued its denial.
How the Rumor Spread
The false information originated from a misinterpreted Fox News interview with Kevin Hassett. When asked if Trump would consider a 90-day tariff pause, Hassett gave a non-committal response: “I think the president is gonna decide what the president is gonna decide,” adding, “even if you think there will be some negative effect from the trade side, that’s still a small share of GDP.”
KILMEADE: Would Trump consider a 90 days pause in tariffs?
HASSETT: 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 pic.twitter.com/3KymvgOwQG
— Aaron Rupar (@atrupar) April 7, 2025
This ambiguous answer was then misrepresented on social media. The rumor gained traction after being posted by the verified “Walter Bloomberg” X account, which has 852,000 followers but is not affiliated with Bloomberg News.
The account later explained its actions to The Wall Street Journal: “I couldn’t find anything on the main wires at the time. After a quick search on X, I traced the headline to a post by T3 Trading Group, LLC. Given the market movement (+4.5%), I deemed the headline reliable and posted it at 10:13.”
Media Amplification and Market Impact
Major media outlets quickly amplified the false information. CNBC aired the claim as a banner on live television, and Reuters then cited CNBC in reporting the same claim. CNBC later admitted that an internal misunderstanding led to the information being displayed without proper verification.
The White House “Rapid Response” account quickly posted on X that this was fake news, prompting markets to dump again. By 10:41 am, the White House denial had wiped out $2.5 trillion in market value within 23 minutes.
The S&P 500 ultimately ended the day down just 0.2%, but not before experiencing its most volatile intraday swing since March 2020. The Nasdaq added 9.5% in less than an hour at peak momentum before falling, while the Dow Jones jumped 7% temporarily.
Bitcoin prices mirrored the stock market’s volatility, pumping 6.5% to briefly top $80,000 before falling back again when the rumor was debunked.
Market Readiness for Positive News
Some market observers viewed the episode as revealing important insights about current market sentiment. Crypto YouTuber Lark Davis noted that “the market is ready to ape, even a lame 90-day delay sent markets soaring.” He added that “shit tons of money is on the sidelines, ready to ape in at a moment’s notice.”
X user Geiger Capital commented that the market reaction might influence Trump’s trade strategy: “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.”
Shortly after the 90-day tariff pause post was deleted, Trump took to his own social media platform, Truth Social, with a very different message.
Rather than pausing tariffs, he threatened China with more: “If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, the United States will impose additional tariffs on China of 50%, effective April 9th.”
This incident highlights the extreme sensitivity of markets to trade policy news and the increasing challenge of information verification in a social media-driven news environment.
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