Revenge of the EuroPoor? EU Markets Today Respond to Smash US Crypto Coins
Today in the EU Markets, President Donald Trump enacted his “Liberation Day” tariff initiative, creating waves in global markets. This action disrupts alliances and targets not only competitors but also key allies such as the EU, Japan, and South Korea.
I anticipated a downturn in markets nearing 7% circuit-breaker levels, yet it appears that markets are factoring in a possible reversal of the tariffs by Trump. We believe this assumption is misguided.
Trump is strongly in favor of tariffs. He intrinsically distrusts global trade, perceiving a trade deficit as a sign of being taken advantage of. This viewpoint has been part of his rhetoric since the 1980s and constitutes perhaps his most unwavering policy stance. Therefore, I see no signs of him retracting these tariffs.
Here’s how the EU Markets plan to counteract and focus on the U.S. crypto space following the tariff update.
EU Markets Today: Will Trump Reconsider?
Those who will profit are those who can adapt quickly.
Leaders such as French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni have already criticized Trump’s tariff strategy for its potential to destabilize Western power and bolster adversarial forces like China.
Macron has proposed a halt to French investments in the U.S. until there is clarity regarding the tariffs: “Brutal and unfounded, this decision necessitates a united European response to safeguard our interests.”
US tariffs list
– Ukraine is included
– Russia is NOT included
– Europe is included pic.twitter.com/hPA2JUwNny— Lord Bebo (@MyLordBebo) April 3, 2025
If U.S. investments are penalized due to the tariffs, it could encompass U.S. cryptocurrencies such as XRP, SUI, and Solana.
Ironically, these projects have seen the most significant declines over the past week, with SUI and SOL both dropping by double-digit percentages.
Trump has also indicated that tariffs are not negotiable. This outlook is quite bearish. The only reason the market isn’t plummeting further is because it is anticipating that nations will concede, de-escalate, and lift their tariffs.
The Most Insightful Trump Tariff Analysis You’ll Find Today
The Trump administration’s tariff philosophy revolves around the deficit divided by exports. In essence, even poorer nations like Cambodia or Sri Lanka, if they export heavily to the United States, are at a disadvantage.
Cambodia: 97%
- US exports to Cambodia: $321.6 M
- Cambodia exports to US: 12.7 B
- Ratio: 321.6M / 12.7 B = ~3%
Vietnam: 90%
- US exports to Vietnam: $13.1 B
- Vietnam exports to US: $136.6 B
- Ratio: 13.1B / 136.6B = ~10%
Sri Lanka: 88%
- US exports to Sri Lanka: $368.2 M
- Sri Lanka exports to US: $3.0 B
- Ratio: ~12%
While this drastically harms Cambodia, it aims to revitalize U.S. manufacturing, ensuring that $6 t-shirts aren’t produced in distant sweatshops but in domestic facilities. Just kidding.
However, tariffs only prove effective if implemented judiciously. Strategically placed tariffs with a gradual rollout and incentives for companies to establish plants in the U.S. might achieve their intended goals. Yet, this abrupt full-throttle approach, raising the average import tariff to nearly 30% without established base level or incentives, may be shortsighted.
Aiming for enhanced industrial output is a completely legitimate aim. To prevent alienating our trade partners, it should be limited to specific products and countries. A sweeping high percentage applied universally is only going to galvanize opposition against us. Why would anyone trust us in the future?
Deutsche Bank has already stated that the U.S. will experience greater losses than Europe.
EU Markets Today: Concluding Thoughts
“Being a U.S. ally is now more disadvantageous than being an adversary. At least as an adversary, you know what to expect.” – Thitinan Pongsudhirak of Thailand’s Chulalongkorn University
Nations such as Cambodia, Vietnam, and Thailand, once touted as alternatives to China’s manufacturing supremacy, are now facing daunting tariffs of as much as 49%.
In contrast, the EU, impacted by tariffs on 70% of its exports to the U.S., intends to respond if diplomatic resolutions are unattainable. They may even entirely restrict U.S. investments in stocks and cryptocurrencies.
What initially seemed a strategy to diminish China’s influence might inadvertently reinforce it, but we’ll see.
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Essential Takeaways
- EU Markets today witnessed President Donald Trump executing his “Liberation Day” tariff initiative that stirred global crypto markets.
- Nations like Cambodia, Vietnam, and Thailand, once praised as alternatives to China’s manufacturing supremacy, now endure heavy tariffs of up to 49%.
- Meanwhile, the EU, impacted by tariffs on 70% of its exports to the U.S., plans to respond if diplomatic resolutions cannot be reached. They may also entirely exclude U.S. investments in stocks and cryptocurrencies.
The post Will the EU Strike Back? EU Markets Today Retaliate Against US Crypto Assets appeared first on 99Bitcoins.
