Crypto Dives as Trump’s Tariff ‘Medicine’ Shakes Global Stock Markets Hard

Jimmy Aki
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Global markets took a hit after President Donald Trump imposed worldwide tariffs, triggering a sharp sell-off across stocks and cryptocurrencies. Bitcoin and Ether dropped 6% and 12% within 24 hours of this implementation, while U.S. futures pointed to further losses.

US Officials defended the move as necessary, though some analysts warned it could mark one of the worst short-term downturns in U.S. market history.

Trump Tariffs Trigger Crypto Sell-Off and Widespread Investor Fear of Trade War

The Trump administration enforced a sweeping global tariff policy as part of its economic transition, imposing a 10% tariff on all countries effective April 5, with steeper rates set for China, Japan, and the European Union at 34%, 24%, and 20%, respectively.

This policy also affected the crypto market as the Crypto Fear & Greed Index dropped to 23 on April 7, signaling “extreme fear.”

Overall, the crypto market cap shrank by over 9%, standing at $2.37 trillion at press time. A broader market dip followed, with S&P 500 futures dropping nearly 4% and the Nasdaq declining.

Charlie Sherry, head of finance at BTC Markets, said the slump wasn’t surprising, citing low weekend liquidity that amplifies large sell-offs.

The U.S. tariffs have ignited fears of a trade war, sending major stock indexes in Asia into a sharp decline on Monday. Meanwhile, European bank shares continued to fall as global market uncertainty intensified.

President Trump defended his economic strategy aboard Air Force One, explaining that he didn’t intend to trigger a market sell-off but highlighted that sometimes tough measures are necessary to address underlying issues.

On his Truth Social account, the President described the tariffs as a major revenue source for the U.S., insisting they are necessary to tackle the country’s trade deficits with China, the EU, and others.

CFOs Predict Recession Amid Tariffs and Debt, But Traders Stay Optimistic

Surveys show rising concerns about a U.S. recession, driven by uncertainty over President Trump’s tariff policies.

In a CFO Council Survey, 60% of CEOs expect a recession in late 2025, with 15% predicting one even sooner.

About 30% of the respondents blame Trump’s trade policy, and many CFOs called the current outlook “somewhat pessimistic.” One said, “The Trump administration might be testing the limits while hoping that things settle after the first 100 days.”

Business leaders have also voiced their frustration with the current economic climate.

Billionaire Paul Tudor Jones warned that the real question isn’t if but when rising debt triggers a market downturn, calling the current path unsustainable.

Still, most expect any downturn to be manageable—50% of the CEOs from the CFO survey foresee a “moderate” recession, while 40% predict a “mild” one.

Billionaire crypto investor Bill Ackman’s prediction about Trump potentially delaying the tariffs to allow room for negotiations or counteroffers appears to be on point.

Following this, National Economic Council Director Kevin Hassett confirmed that over 50 countries have indeed reached out to the White House to negotiate new trade deals, recognizing their share of the tariff burden.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.