Markets prepare for “Trump’s Liberation Day”

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2nd April– The date that has been making rounds for quite some time now, thanks to President Donald Trump aka the “crypto president”.

Today at 4 PM eastern time– in front of the White House Rose Garden, President Trump’s announcement could send shockwaves across global markets, which have been steady– bracing for the impact.

Let’s Analyze 

U.S. President Donald Trump is set to roll out a fresh wave of tariffs, declaring it "Liberation Day" for America. The measures will specifically target nations with high duties on U.S. exports or trade policies deemed unfair by the White House.

But what exactly are the tariffs and which countries will be affected by it?

A universal 20% tariff on all imported goods is being considered, alongside a potential 25% tariff on imported vehicles. BRICS nations could face the most severe restrictions, with a proposed 100% tariff on all products, including Brazilian crude petroleum, Russian platinum, Indian pharmaceuticals, and Chinese electronics.

China, which has already been subjected to a 20% tariff on all exports to the U.S. since February, may see further increases. The European Union might be hit with a 25% tariff on auto imports, while other goods could be taxed between 10% and 20%.

Trade partners Canada and Mexico may also see tariffs ranging from 10% to 25%, depending on trade agreements. The UK is reportedly facing potential tariffs between 10% and 20%, pending negotiations. 

Additionally, countries engaging in trade with Venezuela might encounter a 25% tariff on imports. While these measures have yet to be confirmed, if implemented, they could escalate global trade tensions and a global trade war.

US Treasury Secretary Scott Bessent recently referred to a group of nations as the “Dirty 15,” describing them as the 15% of US trading partners that impose high tariffs and restrictive trade policies against American goods. 

While Bessent did not specify which nations fall under this category, data from the US Commerce Department’s 2024 trade deficit report provides some insight. The report highlights countries with the highest goods trade deficits with the US, including China, the European Union, Mexico, Vietnam, Ireland, Germany, Taiwan, Japan, South Korea, Canada, India, Thailand, Italy, Switzerland, Malaysia, and Indonesia.

These announcements and speculation spiked volatility and created a sense of uncertainty for the markets–even the Fed made the decision to maintain steady interest rates to be cautious of the implications that Trump Tariffs might cause both to the United States and global economy.

But will strict Tariffs actually help the US?

The objectives behind the Trump administration's tariff policies can be difficult to fully understand. However, the U.S. trade strategy released by President Trump’s trade representative on March 3, 2025, outlined three key goals: boosting the manufacturing sector's contribution to GDP, raising real median household income, and reducing the trade deficit in goods.

Trump’s tariffs are primarily aimed at boosting revenue for the U.S. economy by leveling the playing field for American businesses. However, this approach may backfire and cause more harm than good. 

The potential risks include triggering a full-blown global trade war, disrupting global supply chains, and leading to trillions of dollars in losses for economies worldwide. 

Countries such as Canada, Mexico, and China have already signaled their intent to retaliate with tariffs of their own, further escalating the situation. The European Union (EU) has also firmly indicated that it will take decisive action in response to Trump’s tariffs, preparing to impose its own countermeasures.

Due to the escalating implications of these tariffs and their potential to trigger a global trade war, the Trump administration has started to pivot its tone. 

Initially, the administration took a hard stance, announcing tariffs on nearly every country. However, in a shift of approach, Trump recently indicated a more measured response. Speaking at the White House on Monday, he stated that the tariffs he is preparing to announce on Wednesday would be “nicer” compared to the trade policies of the U.S.’s trading partners. 

“The numbers will be lower than what they have been charging us, and in some cases, maybe substantially lower,”
“Relatively speaking, we’re going to be very kind.” 

This new tone suggests that the administration may be trying to de-escalate tensions and mitigate some of the global backlash from its previous, more aggressive tariff proposals.

How did the markets react

This shift in tone and ambiguity is keeping investors on edge and has caused spiked volatility for Crypto, S&P, Nasdaq and the global markets over the past couple of weeks leading up to the “Liberation Day”. In this volatile period, one asset stood out and became the go-to choice for investors.

Bitcoin has been trading in the $84k-$85k as investors watch out for today’s announcement by the crypto president. At this range both an upside and downside can be expected after the announcement, and as crypto markets trade 24x7 in contrast to traditional markets, the news will be weighed in instantly.

Usually volatility and uncertainty push investors away from assets like Bitcoin and towards safer havens like Gold, Silver and even the US dollar.

But this time it’s different.

Analysts have been studying Bitcoin’s correlation with tech stocks and gold to see whether investors perceive Bitcoin as a safe haven for their wealth or a growth investment like tech stocks.

The Trump Tariff could be a test for the theory, which already may be in action as Gold outperformed tech stocks in March and also decorrelated with gold during the start of the year.

So this is a golden opportunity to test out the theory, which could determine where smart money could move potentially in the future.

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