Cryptocurrency markets and global equities plunged after the Trump administration implemented sweeping tariffs on major U.S. trading partners. The financial fallout escalated sharply over the weekend, prompting renewed fears of a worldwide recession.
On April 5, President Donald Trump introduced a blanket 10% tariff on all countries, with elevated rates targeting key economies—34% for China, 20% for the European Union, and 24% for Japan.
Within 24 hours, Bitcoin fell over 6% to $77,883, and Ether dropped more than 12% to $1,575, according to CoinGecko. The total crypto market capitalization dropped over 8% to $2.5 trillion. By April 7, Bitcoin had partially recovered to $78,500, with Ether rebounding to $1,594.
The Crypto Fear & Greed Index scored 23, reflecting extreme market fear. Charlie Sherry, head of finance at BTC Markets, attributed the volatility to low weekend liquidity.
“A few large sell-offs can have a disproportionate impact,” Sherry said. “There’s no mystery behind the trigger: President Trump’s recent tariff talk has rattled macro markets.”
Markets Slide as Global Retaliation Builds
Wall Street responded with historic losses. Dow Jones Industrial Average futures dropped 979 points Sunday night, or 2.5%. Nasdaq-100 futures lost 3.9%, and S&P 500 futures fell 2.9%. On Friday, the Dow fell 2,231 points—part of back-to-back 1,500+ point drops for the first time ever. The S&P 500 dropped 6%, placing it 17% below its February record.
According to the Kobeissi Letter, the market has erased an average of $400 billion per day over the past 32 trading sessions. Tom Dunleavy of MV Global said the trend could become “the worst three-day move for US stocks of all time.”
Asian markets mirrored Wall Street’s collapse. Japan’s Nikkei 225 lost nearly 8%, prompting a circuit breaker in Topix futures. The Hang Seng dropped 9.4%, and the Shanghai Composite fell 6.2%. Alibaba and Tencent saw double-digit losses. South Korea’s Kospi shed 4.1%, and Australia’s S&P/ASX 200 declined 3.8%.
Beijing’s 34% retaliatory tariff on all U.S. imports triggered accelerated selling. Oil prices dropped 4% to $59.49 per barrel. The U.S. dollar fell to 146.70 yen, and the euro slipped to $1.0926.
Administration Holds Course Despite Economic Jitters
Trump defended the tariffs on multiple platforms, stating they would fix America’s trade deficits. On Truth Social, he described the levies as “a beautiful thing to behold.” Aboard Air Force One, he told reporters, “Sometimes you have to take medicine to fix something.”
Commerce Secretary Howard Lutnick told CBS News the tariffs “are definitely going to stay in place for days and weeks.” Treasury Secretary Scott Bessent said more than 50 countries have reached out to negotiate, but added, “they’ve been bad actors for a long time.”
Commodity markets were also hit. Live cattle futures fell as much as $5.95, while feeder cattle dropped over $8.00. China’s tariffs directly impacted U.S. agricultural exports, deepening the decline.
Nathan Thooft of Manulife Investment Management said volatility is likely to persist.
“Given the large number of countries involved, it will take a considerable amount of time to work through the various negotiations,” he said.
Market observers expect wild swings in the days ahead, with few signs of resolution from the administration or its trading partners. Many anticipate additional retaliatory measures from key global economies. Analysts warn that prolonged uncertainty could weigh heavily on investor confidence and corporate spending.
