Crypto Market Falls as Trump’s New Tariffs Roll Out

In a bid to restore the United States of America’s manufacturing capabilities and eventually become a go-to manufacturing hub, President Donald Trump has announced new tariffs on most countries exporting products into the U.S. 

The new development spared no one, from powerful manufacturers like China to less-manufacturing countries.

Every sector feels the aftermath of the tariff, including the crypto space, where some coins, including the leading cryptocurrency, Bitcoin, are witnessing a bearish moment.

BREAKING: Crypto markets have now erased -$200 billion in market cap since their after hours high. pic.twitter.com/6cbIOugaSK

— The Kobeissi Letter (@KobeissiLetter) April 3, 2025

According to Reuters, Takahide Kimchi, executive economist at Nomura Research Institute, depicted Trump’s tariffs as a risk to the global free trade order that the U.S. has upheld since the Second World War.

Bitcoin, Ether, and XRP Prices Fall Amid The New Tariff

Despite Trump’s pro-crypto activities, the new tariff has resulted in a dip in the crypto market.

Bitcoin fell from nearly $88,000 to a bit above $83,000 after Trump announced the new tariff hike. As of the time of covering this news, the Bitcoin price stands at $82,000.

BREAKING: Bitcoin falls below $83,000 as investors rotate out of risky assets following new tariff announcements. pic.twitter.com/8enPjufXCV

— The Kobeissi Letter (@KobeissiLetter) April 2, 2025

Ethereum (Eth) also saw a sharp fall in price, from $1,955 to $1,795. It is currently trading at $1,779.

The same hurdle befell XRP, which fell slightly below $2. Simultaneously, news broke out that Ripple recently unlocked 500 million XRP, which some believed may be a big move for the price increment.

At 15:04 UTC+8, Ripple unlocked 500 million XRP, worth approximately $1.02 billion, from the escrow account marked "Ripple (27)" and transferred it to addresses marked "Ripple (12)" and "Ripple (13)". Currently, Ripple (27) still holds 500 million XRP.https://t.co/PbSHbDLAhy

— Wu Blockchain (@WuBlockchain) April 3, 2025

Other cryptocurrencies, like Solana, LTC, ADA, and Doge, plummeted after the news.

Still, some analysts stated that the news’s impact on the crypto industry was less than that on other industries.

“The price action highlights crypto’s hyper-democratic and borderless nature, allowing investors worldwide to hedge against the potential impact of macroeconomic uncertainties,”

David Hernandez, crypto investment specialist at 21Shares, told Reuters in a note.

The World Is Heading Towards Recession, Antonio Fatas

Commenting on the new tariff, Antonio Fatas, a macroeconomist at the INSEAD business school in France, said that the U.S. and global economies may be gearing up for a global recession. 

“I see it as a drift of the U.S. and global economy towards worse performance, more uncertainty, and possibly heading towards something we could call a global recession,”

said Antonio Fatas, a macroeconomist at the INSEAD business school in France.

In response, the affected countries are also looking for a way out, while some are calling for severe tariffs on U.S. products. 

“We are now preparing for further countermeasures,” says European Commission President Ursula von der Leyen.

The European Commission President added that Trump’s tariffs would deter the prosperous trades that businesses and consumers in the European Union and the United States have enjoyed since World War Two.

She stated that the EU must also defend itself against Trump’s deliberate disruptions to global commerce.