President Donald Trump’s recent announcement of new tariffs has sent ripples through global markets, affecting everything from traditional stocks to digital assets. On April 2, 2025, Trump unveiled a broad set of tariffs during a 45-minute address from the White House. The tariffs include a 10% baseline on all goods imported into the United States, with several countries facing higher rates—China at 34%, the European Union at 20%, and countries like Japan and Vietnam seeing similar increases. Trump also imposed a 25% tariff on automotive imports.

The impact on global markets was immediate. The S&P 500 lost more than $2 trillion in market capitalization within 15 minutes of the announcement. The Nasdaq fell by 5.1%, while the Dow Jones Industrial Average dropped close to correction territory, falling almost 10% from its December high. In Europe, major stock indices also took a hit. The German DAX index lost 1.8%, with companies like Adidas, Puma, and Pandora losing as much as 10% in value. Major U.S. tech companies, including Apple, Nvidia, Tesla, and Amazon, also saw significant declines, ranging from 2.5% to 6%.

Meanwhile, the cryptocurrency market felt the effects of the tariff announcement. Bitcoin dropped by 5.8%, falling to $81,732. Solana, once trading as high as $293 in January, fell by 12%, reaching a 13-month low. Dogecoin lost 10% of its value, and XRP dropped by 7.4%. As a result, investors began flocking to stablecoins in search of a safer alternative.

The global response to Trump’s protectionist policies has been swift. China condemned the tariffs, promising to retaliate with countermeasures. European Commission President Ursula von der Leyen called the tariffs a “serious blow” to the global economy, while the U.K., facing a 10% tariff, has emphasized diplomacy, though they have not ruled out other actions to protect their interests. The new tariff rates on China, including a total tariff of 54%, have sparked particular concern, with China labeling the measures a violation of international trade rules.

Experts warn that the economic fallout could have long-term consequences. Fitch Ratings’ Olu Sonola described the tariffs as a “radical change” that could lead to a global recession. Ryan Lee from Bitget Research added that the tariffs have prompted a massive sell-off in digital currencies, with Ethereum and Solana dropping by 6%. As markets remain volatile, attention will turn to how countries respond and whether these tariffs trigger a broader trade conflict.