Experts warn of market volatility on "Liberation Day" as Trump prepares to announce new tariff policies.

On April 2, 2025, referred to by President Donald Trump as "Liberation Day," is drawing significant attention from the global investment and economic community.

On this day, America is expected to announce "reciprocal" tariff levels against countries that impose trade barriers on this nation. According to Trump, this is an important turning point aimed at protecting the American economy. However, many experts warn that this move could cause significant volatility in the financial markets and seriously impact growth.

"Liberation Day" may be the most important event of the year

According to Bloomberg, Trump is preparing to announce a series of new tariffs on April 2, targeting countries with trade policies unfavorable to America.

Alex Krüger, a renowned economic analyst, emphasized that "Liberation Day" could be the most significant event of the year, with an impact level ten times greater than any meeting of the Federal Reserve (Fed).

"April 2nd is like election night. This is the biggest event of the year, 10 times more important than any FOMC meeting. And any scenario can happen."

According to him, the market's reaction will depend on Trump's direction. If Trump takes soft measures, the market could rebound strongly. Conversely, if he imposes widespread tariffs, the market could plunge 10-15% in a short period.

Krüger also warned of a worse scenario: A "financial storm" could hit in mid-April, coinciding with America’s Tax Day (, exacerbating negative sentiment in the market.

Global concerns rise ahead of the 2/4 deadline

The Washington Post emphasizes that the uncertainty surrounding the "Liberation Day" is causing concern among many countries. Some nations have taken certain steps to try to appease Trump. For example, Mexican President Claudia Sheinbaum has collaborated with America on immigration and drug crime issues, temporarily easing tariff pressures.

However, experts believe that these are only short-term solutions and cannot completely prevent the risks from Trump's tariff policies.

"In the past two months, Trump's tariff policy has caused significant harm to businesses and consumers in America, but the date of April 2 could make things much more serious. We do not know exactly what they will do, but according to what has been announced, it seems that all imported items into America will be subject to a new tariff," Joseph Politano, an economic policy analyst at Apricitas Economics, commented.

At the beginning of February, Trump imposed a 25% tariff on imports from Canada and Mexico, while also imposing a 10% tariff on Chinese goods. The crypto market immediately shook: the total market capitalization dropped 8% in just one day, with Bitcoin plummeting from around 105,000 USD to about 91,000 USD.

Then, on March 11, Trump announced new tariffs on Canada, further causing the market to slide. Since the beginning of February, the S&P 500 index has fallen by 7%, while Nasdaq has lost 10%, primarily due to concerns about inflation and recession.

Therefore, the upcoming "Liberation Day" may create significant fluctuations, leading to a wave of massive liquidations for cryptocurrency traders.

You can see the price of Bitcoin here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

  • Bitcoin recovers after Trump's statement, is it time to stash cash?
  • The Trump administration is considering revaluing gold to finance the purchase of Bitcoin.

Justin

@media only screen and )min-width: 0px( and )min-height: 0px( { div[id^="wrapper-sevio-d89f58f5-7b63-40be-98c0-6b1fd62584fb"] { width:320px; height: 100px; } } @media only screen and )min-width: 728px( and )min-height: 0px( { div[id^="wrapper-sevio-d89f58f5-7b63-40be-98c0-6b1fd62584fb"] { width: 728px; height: 90px; } }

TRUMP0.64%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)