Global financial markets are anxiously awaiting an event that could change the international trade landscape: April 2 – when President Donald Trump's administration announces a series of new tariffs. Dubbed by Trump as "Liberation Day," this reciprocal tariff policy could have far-reaching impacts on the economy, from traditional goods to the crypto market.
"Liberation Day" April 2: Trade war escalates.
In recent statements, he emphasized that the U.S. has been "exploited" by other countries for decades, and it is time to reclaim its interests. The new tax policy will impose heavy tariffs on imported goods, aiming to create balance in the U.S. trade balance.
Tariff levels have been announced:
25% on all imported aluminum and steel into the U.S.
25% on goods from Canada, 10% on energy from Canada.
25% on goods from Mexico.
20% on goods from China.
25% on imported cars and oil from Venezuela (effective this week).
This prompted many countries to immediately take retaliatory action:
Canada imposes reciprocal tariffs on $21 billion worth of goods from the U.S.
China announces tariffs of 10-15% on U.S. agricultural products.
The EU also declares its readiness to respond when the new tax policy takes effect.
However, some countries like Vietnam have proactively negotiated with the U.S. to ease tariffs by reducing taxes on liquefied natural gas, ethanol, and imported cars from the U.S.
Market sentiment and the risk of recession.
These tense developments are pushing the global financial markets into a state of serious instability.
U.S. consumer sentiment has fallen to its lowest level since the 2008 financial crisis.
U.S. stocks dropped 5-10% in just 2 months.
Stocks of large corporations lost 10-20% of their value after one quarter.
In this context, safe-haven assets like gold continue to reach peaks, with global gold prices exceeding $3,100/ounce on the morning of March 31 according to data from ⬇️.
Crypto is aligned with the stock market.
As usual, the cryptocurrency market is also caught in the financial storm, as risk-averse capital is pulling away from high-speculative assets.
Bitcoin (⬇️) fell nearly 7% in 72 hours, from $87,500 to $81,300.
Ethereum (⬇️) lost nearly 15% of its value due to both market sentiment and on-chain liquidation positions.
Total liquidations in the crypto derivatives market reached nearly $150 million in 12 hours, with long positions accounting for over 78%.
Nevertheless, some coins are holding steady or going against the downward trend, indicating that speculative capital is still seeking opportunities in the volatility.
A warning for investors.
The April 2 event could cause the market to continue to shake violently, as the U.S. announces new tariff measures and other countries respond. Investors need to be particularly cautious, closely monitoring economic-political developments, and preparing response strategies.
🚨 Note: The cryptocurrency market is highly volatile and poses significant risks. This article is not investment advice; investors should carefully consider before participating in the market.