The Trump administration announced a baseline 10% tariff on imports, with significantly higher levies on key trading partners, particularly in Asia. China faces a 34% tariff, Japan 24%, Vietnam 46%, and South Korea 25%, while the European Union was hit with a 20% levy.
According to Fitch Ratings, the effective U.S. import tax rate has surged to 22% under Trump, up from just 2.5% in 2024, marking its highest level since 1910.
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Commodities and safe-haven assets reacted sharply to the news. Brent crude fell over 2% to $73.28 per barrel, signaling concerns over global economic activity. Gold surged to a record high above $3,160 per ounce, while the Japanese yen jumped more than 1% to 147.29 per dollar as investors sought safer alternatives to the U.S. dollar.As of 11:23 AM IST, Bitcoin was trading at $83,433, down 1% in the last 24 hours, while Ethereum dropped 2% to $1,825. BTC also touched day’s high of $88,466 before decline. The overall cryptocurrency market capitalization fell 0.97% to $2.68 trillion.
Avinash Shekhar, Co-Founder & CEO of Pi42, said, “The crypto market tumbled after Trump’s tariff announcement, with investors shifting to traditional safe havens like gold. Bitcoin dropped below key resistance levels, while Ethereum and Solana remain under pressure.”He added, “Traders are closely watching support levels as geopolitical and economic factors continue to drive price movements.”Edul Patel, Co-founder and CEO of Mudrex, said, “Bitcoin briefly hit a high of $88,500 before reacting to Trump’s tariffs, leading to a pullback. BTC’s next resistance stands at $87,800, while support is at $81,700.”
Also Read: Gold, not Bitcoin, is the real threat to the Dollar, says Peter Schiff
Major altcoins, including XRP, Solana, Dogecoin, Tron, Toncoin, Chainlink, Avalanche, and Shiba Inu, were down up to 4.5%.
Bitcoin’s market capitalization climbed to $1.653 trillion, with its dominance falling to 61.81%. Trading volume surged 85.5% to $53.33 billion, while stablecoin transactions accounted for 97.11% of total crypto trading, reaching $126.47 billion, according to CoinMarketCap.
Shivam Thakral, CEO of BuyUcoin, said, “While markets initially reacted with volatility, analysts see long-term opportunities for U.S. manufacturing and domestic industries to thrive under reduced foreign competition. The market may stabilize, potentially leading to a rebound. Historical patterns suggest that cryptocurrencies could replicate past surges if key resistance levels are breached, offering promising outlooks for investors who navigate these dynamic market conditions effectively.”
Also Read: Trump’s tariffs send markets reeling, amid trade war and recession fears
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)