Why Is Crypto Down, Trump’s 10% Tariffs Explained

On April 3, the crypto market saw a sharp decline following economic statements made by U.S. President Donald Trump. During the “Make America Wealthy Again” event, Trump announced the introduction of new 10% reciprocal tariffs on goods from all countries.

The announcement included increased tariffs on exports from the EU, China, and other BRICS nations. As a result, S&P 500 futures lost about $2 trillion in market capitalization within 15 minutes — approximately $125 billion per minute on average.

Trump framed the decision as a matter of fairness, claiming that the U.S. was paying twice as much in tariffs compared to what it collected from other countries.

The move triggered notable reactions in both traditional and digital asset markets. In the crypto sector, over 162,000 traders were liquidated within 24 hours, with total losses estimated at around $496 million.

Altcoins and Futures Take the Hit

The overall crypto market capitalization dropped by 2%, reaching $2.68 trillion. Long positions were hit the hardest. Binance recorded the largest liquidation, with an ETH/USDT trade worth approximately $12 million. The Crypto Fear & Greed Index fell to 25, signaling “extreme fear.”

Bitcoin dropped from its daily high of $88.500 to $83.404, posting a 0б9% loss over the day. Ethereum declined from $1.941 to $1.822.

Expert and Market Reactions

Rachael Lucas, an analyst at Australian platform BTC Markets, said the recent Bitcoin rally was a short-lived reaction to diminishing uncertainty. However, when more details emerged about the elevated tariffs targeting China, a wave of sell-offs began.

Lucas reported that trading volume on BTC Markets surged by 46% during the downturn, with large investors exiting their positions. Many retail traders, she noted, were caught off guard and failed to react in time.

Fears of Retaliatory Tariffs

Analysts warn that if China or the European Union introduce retaliatory tariffs, the crypto market could face another wave of panic selling. In response, institutional investors have started seeking hedging strategies, while some traders have scaled back activity until the situation becomes clearer.

This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.