Crypto markets dipped after US President Donald Trump's declaration of a national emergency and sweeping tariffs on all countries as part of his latest salvo in the ongoing trade war. 

The Trump administration has hit all countries with a 10% tariff starting April 5, with some countries facing even larger rates, such as China facing a 34% tariff, the European Union 20%, and Japan 24%. 

During an April 2 speech in the Rose Garden at the White House, Trump said the US is charging countries “approximately half of what they are and have been charging us.”

The crypto market briefly went up at the news of a 10% sweeping tariff,  but once the full scope became known, it dipped with bleeding across the board. 

Bitcoin 

BTC$83,610hadbeen staging a rally, reaching a session high at $88,500 but dropped 2.6% back to around $82,876. Meanwhile, CoinGecko data shows Ether (ETH) dropped over 6% from $1,934 to $1,797 following the tariff announcements and the total crypto market cap dropped 5.3% to $2.7 trillion. 

The Crypto Fear & Greed Index, which measures market sentiment for Bitcoin and other cryptocurrencies, returned a score of 25, classed as extreme fear, in its latest April 2 update. 

However, prices have clawed back some losses since. Bitcoin has recovered 0.8% to $83,205. While Ether regained 1.2% to take back $1,810.

Stock markets didn't fare much better; trading resource The Kobeissi Letter said in an April 2 post to X that the stock market index S&P 500 erased over $2 trillion in market cap, working out to be roughly $125 billion per minute.

Trump tariffs could bring certainty to markets

Rachael Lucas, a crypto analyst at Australian crypto exchange BTC Markets, said the brief surge was a case of “uncertainty relief,”  then a sell-off as the full tariff details were released. 

“On BTC Markets, trading volume surged 46% as local traders scrambled to reposition. Big players took profit on the spike, while smaller investors hesitated,” she said in a statement.

She added that if China or the European Union “hit back hard,” expect another round of panic selling.

US Treasury Secretary Scott Bessent urged US trading partners in an April 2 interview with Bloomberg against taking retaliatory steps, arguing “this is the high end of the number” for tariffs if they don't try to add more levies in response, which could provide a “ceiling” and certainty for markets.

David Hernandez, a crypto investment specialist at crypto asset manager  21Shares, told Cointelegraph that markets experienced significant volatility during Trump’s speech, but the clarity could be a good thing in the long term. 

“Although the tariff rates were slightly higher than expectations, the announcement provided much-needed clarity on the scope and scale of the policy,” he said.

“Markets thrive on certainty, and with speculation now largely removed, institutional investors may see an opportunity over the coming days to take advantage of compressed valuations.”

Hernandez says global responses will be key for the market going forward, speculating that Mexico and key East Asian economies, including China, South Korea, and Japan, could be evaluating countermeasures.