Dust Settles on Liberation Day: Will Trump’s Trade Battle End the Bull Market?
The dust is beginning to clear following President Trump’s “Liberation Day” proclamation, during which he enacted an executive order that introduces mutual tariffs on global trading partners. The news regarding Trump’s tariffs has ignited heated discussions everywhere about the trade war and its potential to disrupt the current financial crypto market bull run.
Yesterday, Trump proclaimed “Liberation Day,” unveiling a baseline tariff of 10% on all imports, with elevated rates of 34% for China and 20% for the EU.
These tariffs are designed to rectify trade imbalances, but they have unsettled the markets as a result. The bull run, which was experiencing a euphoric phase prior to Trump’s inauguration, is now encountering obstacles. Trump and his digital currency regulations, once a source of market base level, are now being closely examined as the tariffs emanate their effects.
LIBERATION DAY RECIPROCAL TARIFFS
pic.twitter.com/ODckbUWKvO
— The White House (@WhiteHouse) April 2, 2025
And Thus Begins the Trump Trade War on Liberation Day
U.S. trading partners, including the EU and China, have also vowed to respond, heightening tensions. Stock markets experienced a downturn, with the U.S. dollar plummeting to its lowest point in six months. Consequently, cryptocurrency markets witnessed a staggering $341 billion rekt within a mere 24 hours.
Economists caution that these tariffs might incite inflation, escalating costs for U.S. consumers and businesses reliant on imports. While the U.S. manufacturing sector may see a domestic uptick as intended by Trump, token supply chain disruptions remain a significant concern. Major tech companies such as Apple and Nvidia are committing to U.S. investments following Trump’s executive order; however, trading market sentiment continues to be tempered amid this shift in trade policy.
CHIEF TARIFF OFFICER! pic.twitter.com/H1F4Km9v79
— Crypto King
The price surge, a symbol of recent economic prosperity, now hangs in uncertainty. The magnitude of the tariffs may echo the repercussions of the 1930s Smoot-Hawley Tariff., which exacerbated a global recession.
While Trump may be open to negotiations, a prolonged trade conflict is anticipated, jeopardizing crypto market advancements and crypto holder faith.
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dropped from $88,000 to $83,000 after the update, with trading volume surging to over 46%. Even though the Trump tariffs do not specifically target cryptocurrency assets, the economic turmoil they incite may stifle crypto asset growth, which typically moves in tandem with the U.S. stock trading market.
Businesses are now preparing for the effects; U.S. chip manufacturers and retailers are facing increased input costs, while oil and gas companies are reporting immediate price surges on materials. Exemptions for pharmaceuticals and copper may provide some relief, but the 25% auto tariff adds strain to an already pressured sector. This automobile industry is likely to impact consumers the most.
Canada and Mexico have avoided the reciprocal tariffs but not the 25% duties on goods. India is encountering a 26% rate, while Australia’s Prime Minister has labeled the 10% tariff as illogical.
Did Trump just impose a tariff on Ethereum or something?
— Lady of Crypto (@LadyofCrypto1) April 2, 2025
Ultimately, the EU’s planned counteractions indicate a reciprocal escalation, complicating Trump’s global trade war.
Some proponents believe that the Trump trade war will enforce fairer trade agreements and invigorate the U.S. economy. Others perceive it as a risky move that might suffocate the pump, adversely affecting Trump’s crypto momentum. Data is also revealing that 70% of traders foresee a bottom in crypto by June if trade anxieties carry on.
As the “Liberation Day” tariffs seek to reclaim economic control, according to Trump’s vision, the implications are becoming manifest in real-time.
Yet, remember, whatever declines will eventually rise, HOLD.
“If BTC surpasses 100k, you can wager it will exceed a million.”– John McAfee
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