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Trump’s “Liberation Day” Tariffs Trigger Market Chaos and Raise Recession Fears
Financial markets and global economists are on edge after U.S. President Donald Trump unleashed a new wave of sweeping tariffs on April 2nd—rattling investor confidence and sparking renewed fears of an impending recession.
Trump Strikes Hard: 10% Minimum Tariffs for All
During a highly publicized White House event dubbed “Liberation Day,” Trump signed an executive order granting himself extraordinary powers to impose reciprocal tariffs on every country that places duties on American goods. The base rate? A minimum of 10%—with many countries facing significantly higher rates.
Trump hailed the move as a step toward “economic independence” for the United States. But economists warn that this policy could backfire, undermining global trade and damaging the U.S. economy more than it helps.
Markets React with Sharp Drops—Crypto Included
News of the tariffs sent shockwaves through global markets, and the crypto space wasn’t spared.
🔹 Bitcoin (BTC) surged briefly to $88,500 before falling 2.6% to around $83,000
🔹 Ethereum (ETH) plunged from $1,934 to $1,797
🔹 The total crypto market cap dropped 5.3% to $2.7 trillion
Gold, in contrast, rose steadily to $3,152 per ounce as investors sought a safe haven amidst uncertainty.
Mixed Reactions from Analysts: Opportunity or Meltdown?
While some fear disaster, others believe the market may have already priced in the impact. Crypto trader Michaël van de Poppe said the tariffs “won’t be as bad as most people expect,” calling it a classic case of “buy the rumor, sell the news.”
BitMEX founder Arthur Hayes warned that fewer exports could lead to lower demand for U.S. Treasury bonds, forcing the Federal Reserve to inject more liquidity—an action that could ultimately benefit Bitcoin.
“The Fed will have to print more money,” Hayes quipped, referencing the infamous "Brrrr" meme.
Crypto Miners Could Be the Big Losers
U.S.-based crypto miners may face steep challenges as the new tariffs target mining equipment imported from Asia.
Mitchell Askew, head analyst at Blockware Solutions, warned that this could drive demand for domestic mining rigs and spike ASIC prices. CEO Mason Jappa added that current imports—mainly from Malaysia, Thailand, and Indonesia—will become more valuable once tariffs kick in.
Meanwhile, firms are scrambling to get machines in before it’s too late. Lauren Lin of Luxor Technology said they’re exploring chartering flights to beat the deadline.
Dubious Math and “Tariff Theater” Raise Eyebrows
Questions have been raised about how Trump’s team calculated the tariff rates. According to journalist James Surowiecki, the administration simply divided the U.S. trade deficit by a country’s exports to America—without factoring in non-tariff barriers.
“What an extraordinary nonsense,” Surowiecki wrote.
NFT collector DCinvestor even claimed he could replicate the tariff list using ChatGPT, suggesting that AI may have played an unofficial role in determining U.S. trade policy.
Stranger still, uninhabited islands like Heard and McDonald Islands were included in the tariff list—even though there’s no trade activity with the U.S.
Mounting Fears of Recession
While Trump argues that tariffs will "make America great again," many experts disagree.
🔹 Nigel Green of deVere Group says Trump is “selling economic illusions”
🔹 Adam Cochrane warns the U.S. lacks the factories, labor, and raw materials to make the policy work
🔹 Goldman Sachs placed the chance of a U.S. recession at 35%; after Trump’s order, Kalshi betting markets raised that to over 50%
Trump insists the Great Depression could have been avoided with stronger tariffs. But economists widely agree the 1930 Smoot-Hawley Tariff Act made things worse—a cautionary tale Trump seems eager to ignore.
Conclusion: Economic Strategy or Global Gamble?
Trump’s tariff wave has split the global stage. While supporters view it as a patriotic defense of U.S. industries, critics see it as economic brinkmanship that could trigger global consequences. One thing is certain: the markets are watching closely—and reacting swiftly. 📉
#TrumpTariffs , #CryptoMarket , #TradeWars , #CryptoNewss , #USGovernment
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Trump Strikes Hard: 10% Minimum Tariffs for All
During a highly publicized White House event dubbed “Liberation Day,” Trump signed an executive order granting himself extraordinary powers to impose reciprocal tariffs on every country that places duties on American goods. The base rate? A minimum of 10%—with many countries facing significantly higher rates.
Trump hailed the move as a step toward “economic independence” for the United States. But economists warn that this policy could backfire, undermining global trade and damaging the U.S. economy more than it helps.
Markets React with Sharp Drops—Crypto Included
News of the tariffs sent shockwaves through global markets, and the crypto space wasn’t spared.
🔹 Bitcoin (BTC) surged briefly to $88,500 before falling 2.6% to around $83,000
🔹 Ethereum (ETH) plunged from $1,934 to $1,797
🔹 The total crypto market cap dropped 5.3% to $2.7 trillion
Gold, in contrast, rose steadily to $3,152 per ounce as investors sought a safe haven amidst uncertainty.
Mixed Reactions from Analysts: Opportunity or Meltdown?
While some fear disaster, others believe the market may have already priced in the impact. Crypto trader Michaël van de Poppe said the tariffs “won’t be as bad as most people expect,” calling it a classic case of “buy the rumor, sell the news.”
BitMEX founder Arthur Hayes warned that fewer exports could lead to lower demand for U.S. Treasury bonds, forcing the Federal Reserve to inject more liquidity—an action that could ultimately benefit Bitcoin.
“The Fed will have to print more money,” Hayes quipped, referencing the infamous "Brrrr" meme.
Crypto Miners Could Be the Big Losers
U.S.-based crypto miners may face steep challenges as the new tariffs target mining equipment imported from Asia.
Mitchell Askew, head analyst at Blockware Solutions, warned that this could drive demand for domestic mining rigs and spike ASIC prices. CEO Mason Jappa added that current imports—mainly from Malaysia, Thailand, and Indonesia—will become more valuable once tariffs kick in.
Meanwhile, firms are scrambling to get machines in before it’s too late. Lauren Lin of Luxor Technology said they’re exploring chartering flights to beat the deadline.
Dubious Math and “Tariff Theater” Raise Eyebrows
Questions have been raised about how Trump’s team calculated the tariff rates. According to journalist James Surowiecki, the administration simply divided the U.S. trade deficit by a country’s exports to America—without factoring in non-tariff barriers.
“What an extraordinary nonsense,” Surowiecki wrote.
NFT collector DCinvestor even claimed he could replicate the tariff list using ChatGPT, suggesting that AI may have played an unofficial role in determining U.S. trade policy.
Stranger still, uninhabited islands like Heard and McDonald Islands were included in the tariff list—even though there’s no trade activity with the U.S.
Mounting Fears of Recession
While Trump argues that tariffs will "make America great again," many experts disagree.
🔹 Nigel Green of deVere Group says Trump is “selling economic illusions”
🔹 Adam Cochrane warns the U.S. lacks the factories, labor, and raw materials to make the policy work
🔹 Goldman Sachs placed the chance of a U.S. recession at 35%; after Trump’s order, Kalshi betting markets raised that to over 50%
Trump insists the Great Depression could have been avoided with stronger tariffs. But economists widely agree the 1930 Smoot-Hawley Tariff Act made things worse—a cautionary tale Trump seems eager to ignore.
Conclusion: Economic Strategy or Global Gamble?
Trump’s tariff wave has split the global stage. While supporters view it as a patriotic defense of U.S. industries, critics see it as economic brinkmanship that could trigger global consequences. One thing is certain: the markets are watching closely—and reacting swiftly. 📉
#TrumpTariffs , #CryptoMarket , #TradeWars , #CryptoNewss , #USGovernment
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.