Trump’s Tariffs Send Crypto and Stocks Plunging
Global financial markets took a major hit following President Donald Trump’s announcement of new tariffs on nearly 200 trading partners. The sweeping measures, including a 10% tariff on most imports and higher rates for key nations, sent shockwaves through equities and cryptocurrency markets.
The new policy, set to roll out in early April, will impose steep duties on foreign-made cars (25%) and targeted levies as high as 49%. While goods from USMCA nations are exempt, the overall impact has rattled investors worldwide.
Full breakdown of reciprocal tariffs by country. Source: Cointelegraph
Crypto Market in Freefall
Bitcoin, which had recently touched $88,000, plummeted 3% to $82,600. The broader crypto market mirrored the decline, with Ethereum dropping over 6% to below $1,800 and Solana shedding 6.5% to trade around $118. Trump-linked memecoins also took a hit, falling over 12%.
Altcoins, including Dogecoin, XRP, BNB, Cardano, and Tron, saw declines ranging from 2% to 6.2%, reflecting the widespread uncertainty gripping the market.
Stocks Face Heavy Losses
Traditional markets also suffered, with Dow, Nasdaq, and S&P 500 futures declining between 2% and 4%. The losses were particularly severe for major tech stocks: Apple fell 7%, Amazon lost 6%, and Nvidia dropped 5%, contributing to a $2 trillion wipeout in market capitalization.
Mining Industry Under Pressure
Bitcoin miners are facing a potential cost surge due to higher tariffs on specialized ASIC chips from China. Some U.S.-based mining firms may avoid the worst, but experts warn that increased equipment costs could squeeze profitability. Mining stocks, including Core Scientific, Riot Platforms, and Hive Digital, dropped between 5.6% and 8.5% in after-hours trading.
Trump’s Economic Vision: Tariffs Over Taxes?
In an unexpected twist, Trump suggested that revenue from tariffs could eventually replace income tax. Commerce Secretary Howard Lutnick backed the idea, stating that the U.S. government should rely on external revenue rather than increasing tax burdens on citizens.
Market Uncertainty Ahead
With inflation fears growing and Q2 GDP projections under threat, analysts warn that crypto and equity markets could face prolonged volatility. Investors are shifting focus to safe-haven assets like gold and Bitcoin, bracing for potential economic fallout from Trump’s aggressive trade policies.
