President Trump plans to announce a new round of reciprocal tariffs on April 2. This will be aimed at reducing the $1.2 trillion trade deficit for the US. He calls it “Liberation Day” for the US economy.
As Trump’s earlier tariffs significantly impacted the crypto market and triggered liquidations, his April 2 decision might also have notable implications for the market.
What’s New with Trump’s Liberation Day Tariff Plans?
Trump may delay some of the most aggressive sector-specific tariffs. This might include industries like those in autos, semiconductors, and pharmaceuticals.
Instead of blanket sector tariffs, the US might focus only on countries with the largest trade surpluses and the highest barriers to US goods. These are informally referred to as the “Dirty 15”—a group of 10 to 15 countries.
However, the decision is still not final. Trump could still change course, as he’s done in past announcements.
“I may give a lot of countries breaks, but it’s reciprocal, but we might be even nicer than that. You know we’ve been very nice to a lot of countries for a long time. But I call it liberation day. April 2nd is liberation day,” the US president announced.
Delaying or narrowing the scope of tariffs could ease some pressure on both the stock and crypto markets.
As we’ve seen recently, when tariffs seem aggressive, markets often dip. When they seem more measured or delayed, prices often stabilize or rebound.
Possible Scenarios for the Crypto Market Under Trump’s Tariff Plans
The April 2 tariff announcement could impact the crypto market in a few key ways, depending on how aggressive or targeted the final policy is. Here’s a breakdown of how and why it might move crypto prices.
If Tariffs Are Aggressive (Broad, High Duties)
Risk sentiment drops: Equity and bond markets would likely react negatively to aggressive tariffs, especially on autos, chips, or pharma. That tends to spill over into crypto, which investors still treat as a risk-on asset class.
Bitcoin and Ethereum could dip, as traders hedge against slower global growth and increased inflation risk.
Capital flight into USD or cash could trigger short-term outflows from speculative assets like altcoins.
For instance, when Trump reaffirmed steep tariffs in February, Bitcoin dropped below $90,000 amid broader market jitters. The same pattern could repeat.
If Tariffs Are Narrowed (Delays or Selective Targeting)
Market relief rally: If Trump’s administration confirms they’ll delay auto/chip/pharma tariffs and only target a few countries with high trade barriers, investor anxiety may ease.
That could fuel a short-term recovery in crypto prices, particularly if equity markets also rebound.
Increased clarity reduces volatility, which markets—including crypto—tend to reward.
For instance, when Trump hinted at flexibility earlier this month, Bitcoin rebounded to around $88,000. Narrower tariffs could spark a similar uptick.
Overall, the crypto market has been highly sensitive to macroeconomic signals lately. Tariffs drive fears of slower global trade and higher inflation.All of these affect investor risk appetite. Even though crypto isn’t directly tied to trade flows, it’s deeply entwined with broader liquidity conditions and investor sentiment.
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