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ARTICLE · 22 APRIL 2025

Markets React To Fake News On Tariffs: A Cautionary Tale For Traders

Gesmer Updegrove LLP
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On April 8, 2025, U.S. financial markets experienced a whiplash moment after an unverified social media report falsely claimed the Trump administration was preparing a 90-day suspension of tariffs.

United StatesInternational Law
Braeden Anderson
Braeden Anderson

On April 8, 2025, U.S. financial markets experienced a whiplash moment after an unverified social media report falsely claimed the Trump administration was preparing a 90-day suspension of tariffs. The news—initially published by pseudonymous Twitter personality "Walter Bloomberg" and subsequently picked up by credible outlets including CNBC and Reuters—set off an immediate and massive rally in equity markets. The rally added trillions of dollars in paper value in a matter of minutes.

But the celebration was short-lived.

The White House quickly issued a firm denial, labeling the news "FAKE" and refuting any plans for a tariff pause. Shortly thereafter, CNBC and Reuters issued corrections and clarified that the original claims had not been verified before publication. Markets tumbled back to prior levels as swiftly as they had risen.

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