Global markets, including crypto, are expecting major volatility and price swings ahead of U.S. President Donald Trump’s highly anticipated “Liberation Day” tariff showdown on Wednesday. The U.S. government under Trump is all set to announce fresh reciprocal tariffs against 25+ countries, including some of its strongest allies.
Fears of impending inflation and lack of clear information on tariff policies has led to a climate of uncertainty in global markets as experts predict a bloody showdown in the middle of this week.
In anticipation of Liberation Day, Wall Street had a chaotic day, swinging between gains and losses before closing slightly higher. The S&P 500 index saw a huge plunge of almost 3% in a week and almost 4% in 1 month. It has seen a little recovery in a day of 0.38%, but people have stated that this was the worst quarter since 2009 for the S & P 500.
The Nasdaq 100 index has been a little positive since a day after plunging 4% in the last 5 days, and this is not all; the market dropped 6% in a month, keeping the traders in shock.
India is also not unaffected by the global market slowdown, as the Sensex crashed 1,400 points (nearly 2%) and the Nifty lost 350 points (1.5%) on April 1. IT and pharma stocks, which rely heavily on the U.S. market, were hit the hardest. At the same time, the India VIX—often called the market’s fear gauge—spiked 8%, clarifying that the turmoil isn’t over yet.
Crypto, however, didn’t see much action. Bitcoin inched up to $83,000, gaining about 1-2%, while Ethereum stayed stuck at $1,800. The overall crypto market cap barely budged, adding just 0.58% to hit $2.7 trillion.
Meanwhile, gold is experiencing a significant surge. With panic in the air, investors are piling into the safe-haven asset, pushing prices to ₹93,000 per 10 grams—and if the uncertainty drags on, this rally isn’t stopping anytime soon.
Trump wants to hit back at countries that impose higher import duties on U.S. goods. The so-called “Dirty 15” list, as per Treasury Secretary Scott Bessent, includes the EU, China, India, South Korea, Japan, Brazil, Mexico, and Vietnam. But the real challenge? The U.S. has trade agreements with over 20 countries and more than 12,500 tariff categories—making sweeping duties a logistical nightmare.
There’s talk of a blanket tariff on “everything, everywhere, all at once,” but that could trigger inflation and disrupt supply chains.
As the U.S. clamps down with new trade restrictions, China is making moves in the other direction—hinting at ramping up imports from India. For Indian exporters worried about Trump’s tariffs, this could be a much-needed breather. It also comes at a time when India and China are trying to patch things up after their 2020 border standoff.
But not everyone’s getting a lifeline from Trump. India’s gems and jewelry industry, which ships out $33 billion worth of products every year, could take a serious hit. If tariffs go up, businesses dealing in cut and polished diamonds, gold jewelry, and lab-grown diamonds could be staring at a rough road ahead.
Trump is set to announce new tariffs at 4 PM ET on April 2 during a White House Rose Garden event titled ‘Make America Wealthy Again.’ According to Press Secretary Karoline Leavitt, the tariffs will take effect immediately, with collections starting on Thursday.
With Trump’s tariffs just hours away, markets are on edge. If this trade war gets uglier, brace for more stock market sell-offs, higher prices, and economic chaos worldwide. Right now, the only thing that’s clear is that nothing is clear.
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