Trump to Announce New Tariffs on April 2: How Will Crypto Markets React?
Vignesh S G25 Mar 20254 min read
US President is set to announce a new round of reciprocal tariffs on April 2, calling it the “liberation day” for the US economy. In a recent statement, he made it clear that he has no plans to soften his tough stance on trade policies. This announcement follows the tariffs he imposed in February on …
US President Donald Trump Donald Trump Donald J. Trump is a US-based business tycoon, pro-crypto politician, and 47th (present) President of the United States. He comprehends the significance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto politician. Once doubtful about Bitcoin's dominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his pool. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency. Quick Facts Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Famous For Business, Politics Donald Trump - Career Highlights & Events 2016 – Elected as the 45th President of the United States from the Republican Party. 2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments 2019 – Slammed crypto king Bitcoin on X, calls it "not money". 2025 – A gala party was hosted by him for the top 220 Trump meme coin holders. President is set to announce a new round of reciprocal tariffs on April 2, calling it the “liberation day” for the US economy. In a recent statement, he made it clear that he has no plans to soften his tough stance on trade policies.
This announcement follows the tariffs he imposed in February on Canada, Mexico, and China, which led to a sharp decline in the cryptocurrency market. That month, Bitcoin dropped by 17.5%. Now, investors are watching closely to see how this new round of tariffs might impact cryptocurrencies, especially Bitcoin.
The US Trade Deficit: A Longstanding Issue
The main goal of these tariffs is to reduce the US trade deficit, which has been growing since 1976.
In January, the US Balance of Trade increased from -98.06 USD Billion to -131.38 USD Billion. The US has the largest trade deficit in the world.
According to the World Population Review, 15 countries account for most of the US trade deficit. These include China, Mexico, Vietnam, Ireland, Germany, Taiwan, Japan, South Korea, Canada, Thailand, India, Italy, Switzerland, Malaysia, and Indonesia.
Which Countries Will Be Affected?
In 2024, the largest deficit in the US was with China ($270.4B). The US had a trade deficit of $157.2B with Mexico, $113.1B with Vietnam, $80.5B with Ireland, $76.4B with Germany, $67.4B with Taiwan, $62.6B with Japan, $60.2B with South Korea, $54.8B with Canada, $41.5B with Thailand, $41.5B with India, $39.7B with Italy, $25.5B with Switzerland, $22.1B with Malaysia, and $16.4B with Indonesia.
Trump’s recent statements suggest that he is determined to address this growing trade gap.
What to Expect from the New Tariffs
Reports suggest that the tariffs will mainly target countries with large trade surpluses and high barriers to US exports. However, there are rumors that the administration may take a cautious approach at first, possibly leaving out key industries such as automobiles, semiconductors, and pharmaceuticals.
Will Crypto Markets Take Another Hit?
In February, the US government, under the leadership of Trump, introduced tough tariffs on China, Canada and Mexico. In the same month, the Bitcoin price declined by over 17.5%.
At the start of February 1, the BTC price was at $102,314.57. On the last day of the month, it slipped to a low of $84,400. Currently, the Bitcoin price stands at $86,683. This clearly indicates that the market has not yet recovered from the impact of the February price drop.
With the new tariffs approaching, analysts are divided on how the markets will react.
- If the tariffs are aggressive, stock and bond markets may fall, which could also drag down cryptocurrencies.
- If the tariffs are less severe or delayed, markets could see a recovery, and major cryptocurrencies like Bitcoin and Ethereum may regain strength.
As April 2 approaches, traders and investors are watching closely to see how Trump’s latest trade decision will shape the future of global markets.
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FAQs
- Tariffs can trigger stock market declines and risk-off sentiment, which often spills over into crypto markets, causing price fluctuations
