- Trump’s ‘Liberation Day’ of April 2nd 2025 has seen Trump declare a hardline stance on sweeping tariffs across the globe.
- Trump’s rhetoric on tariffs has wildly swung back and forth, leading to confusion in the markets.
- The recently published tariff lists provide clarity on what tariffs are to be implemented, with markets largely reacting poorly to the news.
- Analysts from the ‘Tapping Into Crypto’ Podcast break down the effects Trump’s tariffs announcement may have on your portfolio.
Trump has announced a hardline stance relating to tariffs with sweeping measures placed across the globe following his April 2nd 2025 announcement on what was dubbed ‘Liberation Day’.
Such measures, which involve tariffs at higher than expected percentages, hold the potential to spark a trade war and further destabilise markets.
Trump’s rhetoric and actions on tariffs in recent months has caused uncertainty in global markets, with crypto being no exception to this. Tariffs involve a tax imposed by the government on goods imported from foreign countries. This can affect not only markets but also inflation.
Analysts from the Tapping Into Crypto podcast warned that managing your risk exposure leading into the announcement was important, given the unpredictable nature of such an event.
The analysts mentioned that Trump could have focused upon targeted tariffs, likely towards the greatest producers such as China, Mexico, Taiwan, Japan etc. However, Trump opted for a range of sweeping tariffs across a broad range of nations.
The Analysis
The Tapping Into Crypto analysts mentioned that sweeping tariffs could be short-term bearish for crypto, whereas more targeted tariffs could hold more upside volatility. With the former having occurred, the crypto market has dropped as a result with Bitcoin back in the lower US$80k (AU$127.5k) range.
Another factor that the analysts mentioned would be whether the tariffs are implemented immediately or not. With the tariffs immediately coming into effect (though not all the details have been worked out), markets seem to potentially attribute this factor as part of the current downward pressure on Bitcoin’s price.
The analysts also mention that while the exact effects of the tariffs on inflation are unpredictable in the short term, that in the long term tariffs likely lead to greater inflation.
Related: Recession Fear Spreads as Markets Await Trump ‘Liberation Day’; Bitcoin and Alts Trade Higher
How did the Markets React?
The market has not responded kindly to Trump’s hardline stance on tariffs. Despite an initial squeeze higher upon reports of a 10% baseline tariff, the crypto markets then received a heavier downwards correction as the full details emerged through a list of tariffs.
The tariffs announced were more sweeping with higher tariff percentages than expected. Many regions, particularly Asia, were hit with tariffs of a more heavy-handed nature than expected.
Analysts’ Other Thoughts
The analysts also detail how GameStop has planned to buy US$1.3B (AU$2.07B) worth of Bitcoin (with the now confirmed purchase of US$1.5B worth of Bitcoin). The analysts detail that GameStop’s transition to being perceived as a meme has helped to keep the firm profitable.
Also of note was that Wyoming is going to launch its own stablecoin pegged to the US dollar named WYST. The stablecoin is to be powered by layer-0 and available across a range of layer-1s and layer-2s.
The analysts detail how stablecoins have the greatest product-market fit in crypto. Stablecoins have become increasingly prominent in crypto on a global scale.
Related: Stablecoin Giant Circle Files for IPO, Aiming for NYSE Listing Under ‘CRCL’
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