Crypto prices tumbled after U.S. President Donald Trump declared a national emergency and imposed broad tariffs on all countries. At first, markets reacted positively to the 10% base tariff, but that optimism faded fast as more details came out.
Starting April 5, all countries will face a 10% tariff, with some getting hit even harder—China at 34%, the EU at 20%, and Japan at 24%. Speaking from the White House’s Rose Garden, Trump justified the move, claiming the U.S. was simply charging other nations “half of what they charge us.”
David Hernandez, a crypto investment expert at 21Shares, pointed out that while the announcement caused volatility, it also brought clarity. “Markets thrive on certainty. Now that speculation is off the table, institutional investors may step in to take advantage of lower prices,” he said.
He also added, “Although the tariff rates were slightly higher than expectations, the announcement provided much-needed clarity on the scope and scale of the policy.”
Hernandez believes the market’s next moves will depend on how other countries react. He speculates that Mexico, along with major East Asian economies like China, South Korea, and Japan, might be considering countermeasures.
Bitcoin (BTC) had been rallying, hitting a high of $88,500 before dropping 2.6% to $82,876. Ethereum’s price took a big dive, dropping more than 6% from $1,934 to $1,797, according to CoinGecko. The whole crypto market wasn’t far behind, going down by 5.3%, which brought the total market cap to $2.7 trillion.
On top of that, investors got really spooked, and the Crypto Fear & Greed Index dropped to 25, showing there’s a lot of fear and uncertainty right now. But after the sharp drop, prices started to recover. Bitcoin recovered 0.8% to reach $83,205, while Ether climbed 1.2% to $1,810.
Stock markets weren’t spared, either. The S&P 500 lost a staggering $2 trillion in market cap—roughly $125 billion per minute, according to The Kobeissi Letter.
Rachael Lucas, a crypto analyst at BTC Markets, explained that traders initially saw the tariff news as a relief from uncertainty, but panic set in when the full details came out. “Trading volume surged 46% as investors rushed to reposition. Big players took profits on the spike, while smaller investors hesitated,” she said.
The big question now is how other countries will respond. If China or the EU retaliates, expect another round of market turbulence. U.S. Treasury Secretary Scott Bessent warned against retaliation, saying the current tariffs represent the “high end” of the scale—suggesting things won’t escalate further unless other countries push back.
Also Read: Crypto Market Becomes Casualty to Trump’s Tariff Announcements
