The dust is settling after President Trump’s “Liberation Day” announcement, during which he signed an executive order imposing mutual tariffs on global trade partners. The Trump tariffs news heated debates everywhere on the trade war and its power to disrupt the ongoing financial market bull run.

Yesterday, Trump declared “Liberation Day,” unveiling a 10% baseline tariff on all imports, with higher rates of 34% in China and 20% in the EU.

These tariffs aim to address trade imbalances, but markets are rattling as a consequence. The bull run, which was then in a euphoric phase before Trump’s inauguration, is now facing headwinds. Trump and his crypto regulation, once a market booster, are now under scrutiny as tariffs ripple outward.

LIBERATION DAY RECIPROCAL TARIFFS 🇺🇸 pic.twitter.com/ODckbUWKvO

— The White House (@WhiteHouse) April 2, 2025

And Trump Trade War Begins on Liberation Day

US trading partners, including the EU and China, have also promised retaliation, escalating tensions. Stock markets dipped, with the US dollar hitting a six-month low. As a result, crypto markets saw a $341 billion wipeout in 24 hours.

Economists warn that these tariffs will stir inflation, raising costs for US consumers and businesses reliant on imports. The US manufacturing industry may see a domestic boost, as Trump intends, but supply chain disruptions are at risk. Big Tech firms like Apple and Nvidia are vowing on US investments after Trump signed his executive order, yet the market sentiment remains cautious amid this trade war policy shift.

CHIEF TARIFF OFFICER! pic.twitter.com/H1F4Km9v79

— Crypto King👑💎.eth.sol (@cryptosanthoshK) April 2, 2025

The bull run, a hallmark of recent economic growth, now teeters on uncertainty. The tariffs’ scale could echo the 1930s Smoot-Hawley fallout, which deepened a global downturn.

While Trump might open to negotiation, a prolonged trade war conflict is predicted, threatening market gains and investor confidence.

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dropped from $88,000 to $83,000 post-announcement, with trading volume spiking to over 46%. Even though Trump tariffs don’t directly target crypto assets, the economic instability they trigger can dampen crypto growth, which usually goes side by side with the US stock market.

Businesses are now bracing for impact; US chipmakers and retailers face higher input costs, while oil and gas firms report immediate price hikes on materials. Exemptions for pharmaceuticals and copper offer some relief, but the 25% auto tariff adds pressure on an already strained sector. This automobile sector is expected to hit consumers the hardest.

Canada and Mexico dodged the reciprocal tariffs but not the 25% duties on goods. India is facing a 26% rate, while Australia’s PM called the 10% tariff illogical.

Did Trump just put a tariff on ETH or something?

— Lady of Crypto (@LadyofCrypto1) April 2, 2025

Eventually, the EU’s planned countermeasures signal a tit-for-tat escalation, complicating the Trump global trade war.

Some argue that the Trump trade war will force fairer trade terms and boost the US economy. Others see it as a gamble that might choke the bull run, with collateral damage to Trump’s crypto momentum. Data also showing 70% of traders expect a crypto bottom by June if trade fears persist.

As “Liberation Day” tariffs aim to reclaim economic destiny, per Trump’s vision, their cost is unfolding in real-time.

But remember, whatever goes down will go up, HODL.

“If Bitcoin breaks 100k, you can bet it will break a million.”– John McAfee

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Key Takeaways

Trump initiates a trade war with the tariffs order on Liberation Day.
Will crypto stand against the Trump downwind?

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