US President Donald Trump has once again delivered on his campaign promise. Yesterday (Wednesday), he officially ordered reciprocal tariffs to be imposed globally from 5 April. Global stock and cryptocurrency markets are expected to see cautious investor sentiment due to the possibility of an escalated trade war triggered by these US tariffs.

Volatility in the Crypto Market

Volatility in the cryptocurrency market intensified following the tariff announcement. Among the top ten tokens by market capitalisation, Bitcoin dropped by 5.2 per cent, falling from nearly $88,000 to just over $83,000 shortly after the announcement. XRP and Ether also declined by 6 per cent and 5.4 per cent, respectively. Solana, another popular token, also dropped by 6 per cent.

Donald Trump’s official meme token also took a hit, falling around 10 per cent in the past 24 hours. It is now showing signs of recovery.

As a result, crypto futures liquidations surged to $511.77 million over the past 24 hours, according to data from Coinglass. Bitcoin accounted for the largest portion, with $179.71 million in liquidations. The drop in crypto prices signals a broader shift towards risk aversion across financial markets.

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President Trump Keeps His Promise

As President Trump pledged during his campaign, he has introduced reciprocal tariffs for all countries with a trade deficit with the US. With a baseline tariff of 10 per cent, South Asian countries were hit the hardest.

From 5 April, Cambodian products entering the US will be subjected to a 49 per cent tariff, while Vietnamese exporters must pay 46 per cent. Laos and Myanmar have been hit with 48 per cent and 44 per cent tariffs, respectively. China, which charges a 67 per cent tariff on US goods, will now face 34 per cent tariffs on all exports to the US. India, another major trade partner, must now pay 26 per cent tariffs on its exports to the US.

However, Mexico and Canada have avoided additional tariffs.

“There has been whipsaw price action in the aftermath of Trump’s announcement,” said Kathleen Brooks, Research Director at XTB. “There were no carve-outs or exemptions for individual countries or certain sectors, which spooked traders.”

For more new on US tariffs, visit FinanceMagnates.com.

Source: Finance Magnates