- Bitcoin spiked then fell as Trump’s new tariffs, including a 10% baseline and steep increases on key imports, sparked market volatility.
- Trump vowed to end decades of taxpayer exploitation, targeting multiple nations and triggering global concerns about escalating trade wars.
- Higher tariffs are shaking global markets, with Dow futures dropping nearly 1,000 points.
The keyword “tariff” has probably never seen so much activity in Google following Trump’s inauguration as the 47th President of the United States.
Recently, Trump announced new tariffs (again) that will impose a 10% baseline duty on all imports to the US —with even higher rates levied on dozens of other countries, including some of America’s largest trading partners.
Related: Bitcoin Suffers Weakest Q1 in Decade, More Crypto Pain Looms as East Asian Nations Consider United Tariff Response
The Tariff Wars
During an event in the White House Rose Garden, Trump said:
For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike.
Donald TrumpThe new tariffs are the latest measures in the so-called trade war, and global markets are already rattled by the prospect of higher prices for goods ranging from bicycles to wine.
What you need to know is that the market has priced in everything and literally every potential outcome. The Dow futures tumbled 1,000 points almost overnight, according to CNBC, and shares of multinational companies are plummeting. All of this, of course, is based on the fear that tariffs will escalate the trade war.
Bitcoin was doing quite well before Trump announced the tariffs. The leading crypto asset was exchanging hands above US$85.5K (AU$135K) and dropped below US$82.5K (AU$131.5K) after Trump’s speech.
The crypto market capitalisation also shed a few hundred billion dollars, currently at US$2.7T (AU$4.30T), a decrease of 5% in the last 24 hours.
Under the new measures, Chinese imports will face a 34% tariff in addition to the previous 20%, raising the total levy on those goods to 54%. The European Union and Japan are also targeted with tariffs of 20% and 24%, respectively.
It’s All Going Down
This story can be perfectly summarised using High Yield Harry’s post on X:
European leaders expressed dismay at the announcement, with Italy’s Prime Minister Giorgia Meloni warning that a trade war would ultimately weaken the West in favor of other global players.
A White House official, speaking on the condition of anonymity, confirmed that the higher penalties would take effect on April 9 and apply to approximately 60 countries, while the baseline 10% tariff is set to begin this Saturday.
Trump also signed an executive order to close a trade loophole that allowed low-value packages —valued at US$800 (AU$1,270) or less— to be shipped duty-free from China and Hong Kong. This order, set to take effect on May 2, is intended to curb the flow of cheap imports, a measure that has also drawn criticism for its potential impact on supply chains.
In other words, Trump is applying tariffs to anything that exists at this point.
Related: BlackRock’s Larry Fink Warns: Bitcoin Could Challenge US Dollar’s Reserve Status
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