On April 2, Trump made a significant announcement regarding tariffs that has left cryptocurrency markets uncertain. Initially, when he mentioned a 10% fixed tariff, Bitcoin 
$91,081 surged to $88,500. However, following the announcement of country-specific tariffs, selling accelerated, raising questions about the tariffs’ influence on the markets.
US Tariffs and Their Market Impact
The world awoke to a new day, seemingly signaling the start of a historic period marked by a global trade war. While retaliatory measures have not yet been announced, tensions will likely rise if countries take such steps. US officials have advised against retaliation, warning of severe consequences.
Following the announcement of tariffs, S&P 500 futures plummeted by over 3%. Stocks closely tied to global trade suffered significantly, with Apple experiencing a nearly 7% drop and major US tech exporters like Amazon and Tesla declining by more than 4%. Clothing and footwear manufacturers, including Nike, saw a decline of 11% due to high tariffs impacting Vietnam and other production centers.
Firms in the consumer goods sector, such as Adidas and Puma, reported approximately 10% losses. European indices were also affected, with the Stoxx 600 index losing 1.5% of its value.
Global Trade War Unfolds
Trump’s decision to impose a minimum 10% tariff on all firms exporting to the US, particularly targeting major trade partners like China, Japan, and the European Union, signals a marked escalation in global trade war fears. These tariffs are not historically unprecedented; however, they are significantly higher than previous levels.
In his previous term, Trump implemented much lower tariffs that eventually led to negotiations, but the current tariffs are over ten times greater. The potential effects on global economies will be substantial. Either parties will reduce tariffs mutually, or retaliation will escalate tariffs further. Alternatively, we may witness a scenario where countries outside the US forge broad trade agreements that exclude the US from global trade.
The possibility of retaliation from China and the EU has heightened interest in safe-haven assets. As yields on ten-year bonds dropped to their lowest levels in five months, the Yen and Swiss Franc strengthened, while gold prices surged to record highs. Brent crude oil futures also fell by more than 4%, with losses in copper, aluminum, and zinc increasing.
Gold reached a new record at $3,164 before retreating to the $3,100 range.
