Global financial markets are tense in anticipation of an event that could change the landscape of international trade: April 2nd - the moment President Donald Trump announces a series of new tariffs. Dubbed “Liberation Day” by Trump, this reciprocal tariff policy could have far-reaching effects on the economy, from traditional goods to the crypto market.
“Liberation Day” April 2nd: Trade war escalates.
In recent statements, #TRUMP emphasized that the U.S. has been "exploited" by other countries for decades and that it is time to reclaim interests. The new tariff 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 take immediate retaliatory actions:
Canada imposes retaliatory tariffs on $21 billion worth of goods from the U.S.
China announces tariffs of 10-15% on U.S. agricultural products.
The EU has also declared its readiness to retaliate when the new tariff policy takes effect.
However, some countries like Vietnam have proactively negotiated with the U.S. to ease tariffs by reducing tariffs 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.
Shares of major corporations lost 10-20% of their value after one quarter.
In this context, safe-haven assets like gold continue to hit peaks, with global gold prices surpassing $3,100/ounce on the morning of March 31st according to data from #FXCE .
Crypto correlates with the stock market.
As usual, the cryptocurrency market is also caught in the financial storm, as risk-averse capital is pulling out of high-speculative assets.
Bitcoin ($BTC ) fell nearly 7% in 72 hours, from $87,500 to $81,300.
Ethereum ($ETH ) 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 longs accounting for over 78%.
However, some coins still hold steady or go against the downward trend, indicating that speculative capital is still seeking opportunities amid the volatility.
A warning for investors.
The April 2nd event may cause the market to continue to shake violently, as the U.S. announces new tariff measures and other countries react. 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.