How Did Trump’s Tariffs Affect Crypto?

Starting April 5, Donald Trump imposed a 10% tariff on all imports. Some nations faced higher rates:

• China: 34%
• European Union: 20%
• Japan: 24%

Bitcoin initially surged to $88,500 but quickly dropped by 2.6% to $82,876. Ethereum lost over 6%, plunging from $1,934 to $1,797.

Will Panic Selling Continue?

Due to market uncertainty, the Crypto Fear & Greed Index plummeted to 25, signaling “extreme fear.”

BTC Markets analyst Rachael Lucas commented on the sharp price movements:

“Markets briefly felt relief, but as full tariff details emerged, a strong sell-off followed.”

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Lucas warned that if China or the European Union retaliates aggressively, another panic wave could hit crypto markets.

Long-Term Market Impact

David Hernandez, a crypto investment expert at 21Shares, suggested that clarity on tariffs could actually be a positive factor in the long run:

“Markets thrive on certainty. Now that speculation is largely removed, institutional investors might see an opportunity to enter at lower valuations.”

However, global reactions—especially from China, South Korea, and Japan—will be crucial in determining the market’s next moves.

Trump Proposes Eliminating IRS and Using Tariffs to Fund the Government

Donald Trump made a bold proposal: Abolishing the IRS and funding the government solely through tariffs! Trump argued that the U.S. was wealthiest in the 19th century when tariffs, not income tax, were the primary revenue source.

Commerce Secretary Howard Lutnick backed the plan, stating:

“The government keeps demanding more taxes from citizens. Tariffs will protect American workers and strengthen the U.S. economy.”

If implemented, this plan could save American taxpayers between $134,809 and $325,561 over their lifetimes.

Gold Hits $3,200 Record Amid Economic Uncertainty

As economic fears mounted, gold prices soared, reaching an all-time high of $3,200 per ounce.

Gold often serves as a safe-haven asset, especially in times of crisis. While Bitcoin dipped due to tariffs, gold continued its upward trend.

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