Key Takeaways:
- With U.S. tariffs on China skyrocketing to 104%, major indexes slid into the red, amplifying fears of an economic downturn sparked by an escalating trade war.
- Bitcoin dipped over 3% amid Trump’s aggressive tariff escalation, which rattled investor confidence across both traditional and digital markets.
- While Trump defends the tariffs as necessary “medicine,” backlash is mounting over potential recession risks and fractured global alliances.
Trump Won’t Back Down, the White House Says
U.S. markets continued to falter Tuesday as U.S. President Donald Trump once again escalated tariffs against China to 104% amid the launch of his controversial tariff policies.
The White House confirmed to CNBC on April 8 that the U.S. would ramp up its tariffs against China to 104% after the country vowed to fight back against the proposed policy.
China was originally slated for a 34% increase on tariffs on Wednesday, though Trump added a 50% increase once the country refused to rescind its retaliatory tariffs against the U.S.
Ahead of close on Tuesday, the Nasdaq was down over 2%, while the S&P and Dow Jones Industrial Average were both down by over 1% respectively.
Crypto markets were also negatively impacted by Trump’s controversial tariffs on Tuesday, with Bitcoin plummeting 3.15%.
“Countries like China, who have chosen to retaliate and try to double down on their mistreatment of American workers, are making a mistake,” White House Press Secretary Karoline Leavitt said Thursday. “President Trump has a spine of steel, and he will not break.”
Stock Markets Swing as Tariffs Hit
The startling swings and overall slump of the stock market have prompted widespread public backlash over Trump’s trade war, with critics arguing that the policies may teeter the U.S. closer to a recession while alienating strategic alliances.
Trump, who widely campaigned on a pro-crypto stance, claims that the polarizing economic decision will bolster U.S. manufacturing and decrease dependence on foreign goods.
“I don’t want anything to go down but, sometimes you have to take medicine to fix something,” Trump told reporters on Air Force One this past Sunday.
Despite the economic windfall, Binance CEO Richard Teng believes there may be a silver lining for the digital asset sector.
“Looking further ahead, though, this environment could also accelerate interest in crypto as a non-sovereign store of value,” Teng said in an X post Tuesday. “Many long-term holders continue to view Bitcoin and other digital assets as resilient during periods of economic stress and shifting policy dynamics.”
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