Trump's “Liberation Day” on April 2 aims to reshape trade policies but could spark global volatility.

Analyst Alex Kruger warns April 2 could be 10x more impactful than Federal Reserve meetings.

On April 2, the U.S. government will announce new tariffs on other countries. These tariffs are part of President Trump’s plan to reshape trade policies and protect the U.S. economy, but experts warn that they could trigger major market chaos. As the threat of tariffs looms large, financial markets kicked off the week with modest gains, but all eyes are on April 2.

The threat of tariffs has already begun to impact cryptocurrency prices. Bitcoin (BTC) is currently trading up over 7% at $87,230, while Solana’s SOL is also seeing significant gains of nearly 6% to reach $138.

What Is Happening on April 2?

On April 2, the U.S. government will announce new tariffs on other countries in response to their trade barriers against the U.S. These tariffs are a key part of President Trump’s strategy to renegotiate trade deals and create a fairer playing field for American businesses and workers.

However, experts warn that these tariffs could create big problems for global markets. Well-known economic analyst Alex Kruger, describes April 2 as the most important event of the year, saying it is “10 times bigger” than any Federal

Kruger explains that the market’s reaction will depend on how strict Trump’s tariffs are. If the tariffs are mild, the market may rise sharply. But if Trump announces harsh trade rules, the market could fall by 10% to 15% very quickly.

Some experts also warn that these new policies could cause financial trouble by mid-April. This would happen around U.S. Tax Day, which is already a stressful time for markets.

How Are Other Countries Reacting?

Many countries are trying to avoid Trump’s tariffs. For example, Mexico’s President Claudia Sheinbaum is working with the U.S. to control immigration and crime, hoping to reduce trade tensions. However, experts say this might not be enough to stop the risks.

They warn that U.S. businesses and consumers are already feeling the impact, and if the April 2 tariffs go ahead, the situation could get much worse.

How Could This Affect Crypto?

In February, Trump raised tariffs on Canadian, Mexican, and Chinese goods. This caused an immediate drop in the crypto market. The total crypto market cap fell 8% in one day, with Bitcoin dropping from $105,000 to $92,000.

The threat of tariffs has been a major talking point in the crypto community, with some analysts predicting that Bitcoin could fall to as low as $40,000 if the tariffs are announced.

With just days left until April 9, investors are preparing for major volatility. If the tariffs are aggressive, the stock and crypto markets could see massive price swings.