Trump's New Global Tariff Regime Reshapes Investor Sentiment, Triggering Sharp Corrections Across Risk Assets

Market analysts say President Donald Trump's newly announced global tariff regime is already reshaping investor sentiment, triggering sharp corrections across risk assets.

The past week has seen a shift in market sentiment, with market analysts attributing it to President Donald Trump's newly announced global tariff regime, which has triggered sharp corrections across risk assets, including crypto.

While digital currencies have shown some resilience, experts caution that they remain exposed to broader macroeconomic shocks.

Trump's April 2 speech, which introduced a "reciprocal tariff" program with baseline rates starting at 10 percent and scaling up to 50 percent by April 9, brought immediate volatility to financial markets. Bitcoin (BTC) dipped below the $82,000 level, while U.S. equity futures and global ETFs slid.

"Markets thrive on clarity, and now that the scope is known, we may see institutions buy the dip. Still, the announcement rattled equities and crypto alike. Bitcoin held above key support at $82,000 but couldn't avoid broader risk-off pressure," said David Hernandez, crypto investment specialist at 21Shares.

As the dust settles on the surprising tariff announcement, key tiers of the program are set to activate on April 9, with the potential to raise the minimum tariff to 50 percent if needed.

"We're not at safe haven status yet, but if confidence in fiat wavers, Bitcoin might decouple over time," added James Toledano, COO of Unity Wallet.

"This move by the U.S. president is a Declaration of Economic Independence, aimed at rebalancing global trade dynamics and shifting the economic landscape," the statement from the White House read.

Crypto: Still Correlated

Hernandez further noted that institutional inflows into Bitcoin ETFs remained steady this week, suggesting some investors may be viewing the dip as an entry point.

"The market reaction underscores Bitcoin's borderless appeal in hedging against geopolitical uncertainty as key U.S. trading partners, including China, South Korea, and Mexico, are expected to respond in the coming days or weeks, paving the way for further volatility across all asset classes—crypto included."

However, crypto miners are pivoting to alternative coins amid the Bitcoin downturn.

This article originally appeared on Benzinga