Global financial markets are in confusion after a bold move by President Donald Trump announced big new tariffs on nearly 200 of America’s trading partners. Donald Trump’s bold decision has a shockwave through overnight trading, causing cryptocurrencies to drop sharply along with other assets.
Trump’s executive orders are connected to historical resonance, which refers to the principle of reciprocity that has been part of U.S. trade policy since 1934. But, Trump said that this balance has shifted dangerously in recent years and due to this America faces disadvantages. The new rules & regulations will apply soon and impose a 10% tariff on most imports starting from April 5. In some nations, from April 9, more taxes—some as sharp as 49%—are targeted. Specifically, a 25% tax will be applied to all foreign cars, but products that follow the USMCA trade agreement will be exempt from this tax.
The results have been swift and understanding. Bitcoin, which earlier reached $88,000, shed 3% to settle at $82,600, while the major crypto market also fell by 3.6% in just a single day. The GMCI 30 index, a barometer that tracks the digital holdings performance, dropped by 4.6%. Altcoins faced even major losses: Ether dropped over 6% to below $1,800, Solana dropped 6.5% to nearly $118, and even the Trump-backed memecoin fell more than 12%, going below $10. Among the major top cryptocurrencies, XRP, Dogecoin, BNB, Cardano, and Tron all saw losses in the range of 2% to 6.2%.
Beyond the digital world, the traditional markets are also ready for the difficulties. Futures linked to the Downside, Nasdaq, and S&P 500 plunged between 2% and 4% after-hours, which made for a volatile day on Thursday. Big corporate titans like Apple, Nvidia and Amazon also saw their shares fall; Apple dropped 7%, Nvidia fell 6%, and Amazon dropped 6%, as reported by Consumer News and Business Channel (CNBC).
The ripple effects of these tariffs are expected to touch every corner of the economy, with the cryptocurrency sector experiencing surprising headwinds. Alexander Blume, CEO of the Two Prime Digital Assets, has warned that Bitcoin miners, who depend on specialised ASIC chips from China, could experience high costs, reducing their profits. However, some U.S. mining companies that purchase equipment beyond China’s borders may not be affected so much.
The CFO of Hive Digital, Darcy Daubaras, said that while hardware suppliers may raise the prices, the global nature of Bitcoin mining, linked to its fixed supply, will face less efficient miners being pushed out. This might lower network difficulty and increase profits for the more efficient leaner survivors. While this, mining companies like Core Scientific, MARA, Riot Platforms, and Hive Digital face losses, with their stocks dropping 5.6% to 8.5% in after-hours trading.
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