Global Markets and Crypto Slide as Trump Unveils Sweeping Reciprocal Tariffs
Global financial markets and the cryptocurrency sector saw sharp declines overnight after President Donald Trump unveiled reciprocal tariffs on nearly 200 U.S. trading partners.
The new policy introduces a baseline 10% tariff on all imports, exempting USMCA-compliant goods, while certain countries will face tariffs as high as 49%. China will be hit with a 34% tariff, the European Union with 20%, and all foreign-made cars will face a 25% import tax. The baseline 10% tariff takes effect April 5, while the reciprocal tariffs will be enforced starting April 9.
“For decades starting in 1934, U.S. trade policy has been organized around the principle of reciprocity,” Trump wrote in his executive order. “However, despite a commitment to the principle of reciprocity, the trading relationship between the United States and its trading partners has become highly unbalanced, particularly in recent years.”
Following the announcement, U.S. equity futures and major cryptocurrencies dropped sharply, triggering a broad risk-off move in global markets.
Markets React with Sharp Losses
Market analyst The Kobeissi Letter described the scene as “truly insane to watch,” noting that markets reversed violently as Trump announced individual tariff rates during his “Make America Wealthy Again” event.
The S&P 500 lost more than $2 trillion in market capitalization within 15 minutes, while Nasdaq 100 futures swung nearly 900 points before closing off session lows.
As of 8:45 PM ET, major stock index futures saw steep declines:
📉 Dow Jones futures: -1.26%
📉 S&P 500 futures: -1.16%
📉 Nasdaq 100 futures: -1.20%
The broader crypto market fell 3.6% over the past 24 hours, with the GMCI 30 index dropping 4.6%. Bitcoin, which had approached $88,000 earlier in the day, slid 2.3% to $83,200, according to CoinGecko data.
Altcoins and Trump Memecoin Plunge
Altcoins saw steeper losses, with Ethereum dropping over 6% below $1,800, Solana down 6.5% to $118, and major cryptocurrencies like Dogecoin (-6.2%), XRP (-5.5%), BNB (-3.7%), Cardano (-5.8%), and Tron (-2%) all suffering declines.
Notably, the Official Trump memecoin fell over 12%, dropping below $10, according to The Block’s TRUMP data.
Futures for the Dow, Nasdaq, and S&P 500 signaled a rough market open on Thursday, with declines of 2% to 4%. Blue-chip stocks also took a hit, with Apple (-7%), Amazon (-6%), and Nvidia (-5%) falling sharply, according to CNBC.
Tariffs’ Impact on Crypto and Bitcoin Mining
The crypto sector is expected to face ripple effects from Trump’s tariff policy, particularly in Bitcoin mining, which relies heavily on ASIC chips produced in China.
“The bitcoin mining industry depends exclusively on ASIC computer chips that come from China,” said Two Prime Digital Assets CEO Alexander Blume told the Block. “Hikes on tariffs for these products will make production costs for miners higher and their businesses less profitable. As a result, these stocks may struggle to compete with their non-U.S. peers.”
However, some U.S.-based mining firms source their equipment from manufacturers outside of China, meaning they may be less affected.
According to Hive Digital CFO Darcy Daubaras, hardware suppliers will likely try to pass on higher costs due to the tariffs, increasing the capital required for mining operations. However, the Bitcoin mining industry operates on global competition and a fixed Bitcoin supply, meaning miners cannot simply “pass on” costs like traditional businesses.
“Higher hardware prices in the U.S. will likely push out less efficient miners, potentially leading to lower network difficulty and improved profitability for those with lower operational costs,” Daubaras explained.
Following Trump’s announcement, mining stocks saw declines in after-hours trading:
📉 Core Scientific: -8.5%
📉 MARA: -7%
📉 Riot Platforms: -5.6%
📉 Hive Digital: -5.6%
Economic Uncertainty Driving Investors to Bitcoin?
With increased market uncertainty and inflation concerns, some experts predict that investors will shift toward stores of wealth like gold and bitcoin.
Interestingly, Blume also speculated that the U.S. government may use new tariff revenues as a way to acquire Bitcoin, citing Trump’s executive order to explore Bitcoin acquisitions in a budget-neutral way. “Trump has given an executive order to explore acquiring bitcoin so long as it is done in budget-neutral ways,” Blume said. “This new source of federal income may prove to be the solution.”
While Alexander Blume sees Bitcoin as a potential store of wealth amid economic uncertainty, others take a more cautious stance on crypto’s resilience in turbulent markets. Joe McCann, founder and CEO of Asymmetric, argues that crypto remains heavily influenced by macroeconomic trends and traditional markets. “Very little reason to own risk here,” McCann told Decrypt. “Crypto is at the behest of macro and traditional markets at this point… Without a clear and distinct catalyst, crypto is simply going to trade like any other risk asset.”
