U.S president Donald Trump has stirred the crypto market on several occasions with tariffs aimed at commodities from different countries. While the tariffs are aimed at the ‘greater good,’ they have often caused panic across the crypto and forex market. The upcoming ‘Liberation Day’ according to president Trump could not be any different either.
As we move into the eventful day scheduled for April 2, market participants are concerned about what’s in store for the market. Let’s understand ‘Liberation Day’ and why crypto investors must keep watch of announcements on the U.S ‘Liberation Day.’
Understanding Trump’s ‘Liberation Day’
Dubbed as ‘Liberation Day’ by Donald Trump, April. 2, 2025 could be a monumental day for America. On this day, the president is set to implement several tariffs on imports on certain goods from different countries. The eventful day stems from the belief that other nations have been taking advantage of the U.S and that Trump wants to put an end to it.
“For years we have been ripped off by virtually every country in the world, both friend and foe. But those days are over — America first!!!” Trump said in his announcement.
Trump had agreed to put a pause on tariffs proposed on various countries until April and tomorrow could be the day to implement them. But, it is still not clear about the tariffs that will be implemented during the event.
However, reports have it that Trump could implement reciprocal tariffs on nations that have imposed tariffs on the US. Other tariffs could include a 25% tariff on countries that purchase oil from Venezuela, 25% tariff on Mexico & Canada. Additionally, 25% auto tariff on foreign imported cars could also be implemented.
According to a Statista report, some of the products that the US imported most in 2024 include pharmaceutical products, passenger cars, automotive parts, crude oil, computers, industrial machinery, among others. All of these goods from different countries could face additional taxes on Liberation Day.
Crypto Market’s Reaction to Tariffs
The U.S president first signed an executive order for tariffs in January. 20, 2025 upon his inauguration. However, at that moment in time, the crypto market was beaming with optimism for digital assets as Trump had adopted a pro-crypto stance in his campaign hence the tariff executive order did not have an impact on the market.
But, the announcement of the tariffs on China, Mexico and Canada stirred the market. The crypto market dipped as Trump was set to implement 10% tariffs on all Chinese goods and 25% on Mexico and Canada in February. 4, 2025. With more tariffs coming up, the crypto market dipped further in February and several attempts of recovery were hindered by reciprocal tariffs.
Clearly, Trump’s tariffs on other countries and reciprocal tariffs which have teased a trade war between global giants is not good for the crypto market. Because of this, the tariffs set to be implemented on the crypto market could have a similar result to the crypto market. This might result in stagnation or further drop in the price of top coins like BTC and Ether.
Should Crypto Traders be Worried Ahead of Liberation Day?
Many market experts have predicted that the upcoming Liberation Day could cause more struggle to the crypto market. Notably, entrepreneur and political analyst Anthony Scaramucci insinuated in a X post in March. 31, 2025 that “Liberation Day is Liquidation Day.” Scaramucci’s statement comes as worries about the implication of the day loom in the crypto market.
With most viewing Trump’s tariffs as a means to negotiate better trade policies for the US, these tariffs could cause massive disruptions across economies and markets. For traders, this spells out a warning as investors should be careful of the impending impact.
As of the time of writing, BTC is trading at $84,294.98 according to Coinmarketcap data. The current price marks a 3.46% surge on the day depicting strong resilience by the coin.
In fact, Bitcoin has recorded $27.43 billion in trading volume which is a 40.37% surge over the last 24 hours. An increase in trading volume with rising prices shows confidence is building around BTC. But, investors must express caution since Bitcoin is highly volatile.
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