US President Donald Trump's policy of implementing reciprocal tariffs on its trading partners directly shook the global financial markets. Not only did it pressure the US stock market, but this policy also caused the price of Bitcoin$BTC to plunge from 87,000 US dollars (around IDR 1.39 billion) to 83,000 US dollars (around IDR 1.32 billion). Conversely, gold prices surged sharply approaching 3,200 US dollars per ounce or around IDR 51 million per ounce, reflecting a surge in investor interest in hedge assets amid concerns over escalating global trade wars.
A sharp decline also occurred in the US stock market, especially in the technology sector. The Nasdaq 100 index dropped 2.3 percent and the S&P 500 corrected 1.7 percent in after-hours trading, after tariff policy details were announced. Several leading stocks such as Tesla (TSLA) and Palantir (PLTR) plummeted around 8 percent, Apple (AAPL) fell 7 percent, while Amazon (AMZN) and Nvidia (NVDA) weakened by 6 percent each. Shares of major retail companies like Nike (NKE) and Walmart (WMT) were also under pressure, correcting by 7 percent each.
The spike in gold prices was triggered by investors' concerns about potential trade tensions between the US and its main partners like China and the European Union.
Based on the details of the tariff policy, starting April 3, the US will impose a 25 percent tariff on all imported cars. Followed by a general tariff of 10 percent on all imported goods effective from April 5. Special tariffs on several countries will take effect on April 9, including China at 34 percent, Vietnam 46 percent, Taiwan 32 percent, South Korea 25 percent, the European Union 20 percent, and Switzerland 31 percent. According to Fahmi Almuttaqin, an analyst from Reku, if this policy is fully implemented, it is possible that inflation in the US will rise again, causing the Federal Reserve to delay interest rate cuts.
“Moreover, market concerns about the existing uncertainties can make investors more cautious about high-risk investment instruments such as crypto assets and stocks, which can lead to further price pressure,” explained Fahmi in a press statement, quoted Friday (4/4/2025).
However, Fahmi added that the long-term effects of this policy will still heavily depend on the response from the business sector and consumer behavior. If this policy leads to increased unemployment or even a recession, there is a chance that The Fed will consider monetary easing. “Existing policies can also change at any time, especially considering Trump's track record of often using import tariffs as a political negotiation tool,” he added.
"The current correction and pressure in the market could be a buy on weakness moment, especially since the institutional accumulation trend towards crypto assets like Bitcoin is still quite solid. For example, GameStop currently has fresh funds of nearly 1.5 billion US dollars (around IDR 23.9 trillion), part of which will likely be used to acquire Bitcoin,” he said. For novice investors, the dollar cost averaging (DCA) strategy could be a wise choice. With this method, investors accumulate assets periodically, for example once a month, to achieve a better average price in the long run.
“The prices of crypto assets, especially altcoins, and US stocks have currently corrected enough. If market pressure continues, investors might actually get lower accumulation prices and be ready to realize profits when the market turns around,” said Fahmi.
He emphasized the importance of selecting assets with high market capitalization and liquidity for investors who are not too aggressive.