The post Trump’s “Liberation Day” Tariffs: Will April 2 Crash the Market or Send Bitcoin Soaring? appeared first on Coinpedia Fintech News
Financial markets kicked off the week with gains, but all eyes are on April 2 as Trump’s “Liberation Day” tariffs get closer. These tariffs will target countries with trade barriers against the US, but experts warn they could trigger major market chaos. Bitcoin is already reacting, jumping to $87,230, while Solana’s SOL is also surging nearly 6% to $138.
What Is Happening on April 2?
On April 2, the US government will announce new tariffs on other countries. Meanwhile, U.S. President Trump calls this day as a “Liberation Day” and says it is a step to protect the US economy. However, experts warn that these tariffs could create big problems for global markets.
Well-known economic analyst Alex Kruger believes April 2 could be the most important event of the year. He even says it is “10 times bigger” than any Federal Reserve meeting.
Kruger explains that the market’s reaction will depend on how strict Trump’s tariffs are. If the tariffs are mild, the market may rise sharply. But if Trump announces harsh trade rules, the market could fall by 10% to 15% very quickly.
Some experts also warn that these new policies could cause financial trouble by mid-April. This would happen around US Tax Day, which is already a stressful time for markets.
How Are Other Countries Reacting?
Many countries are trying to avoid Trump’s tariffs. For example, Mexico’s President Claudia Sheinbaum is working with the US to control immigration and crime, hoping to reduce trade tensions. However, experts say this might not be enough to stop the risks.
They warn that US businesses and consumers are already feeling the impact, and if the April 2 tariffs go ahead, the situation could get much worse.
How Could This Affect Crypto?
In February, Trump raised tariffs on Canadian, Mexican, and Chinese goods. This caused an immediate drop in the crypto market. The total crypto market cap fell 8% in one day, with Bitcoin dropping from $105,000 to $92,000.
With just days left until April 9, investors are preparing for major volatility. If the tariffs are aggressive, the stock and crypto markets could see massive price swings.