Trump's New Tariffs Send Ripples Through Global Markets, Affecting Stocks and Digital Assets

President Donald Trump's recent announcement of new tariffs has sent ripples through global markets, affecting everything from traditional stocks to digital assets.

President Donald Trump's recent announcement of new tariffs has sent ripples through global markets, affecting everything from traditional stocks to digital assets. The move, which came during a 45-minute address from the White House on April 2, 2025, saw Trump unveil a broad set of tariffs.

A 10% baseline tariff will be applied to all goods entering the United States, with several countries facing higher rates. China's tariffs were set at 34%, while the European Union will face a 20% tariff. Similar increases were seen for countries like Japan and Vietnam. Trump also announced a 25% tariff on automotive imports.

The impact on global markets was swift. The S&P 500 lost over $2 trillion in market capitalization within 15 minutes of the announcement. The Nasdaq fell by 5.1%, while the Dow Jones Industrial Average dropped close to correction territory, decreasing almost 10% from its December high.

In Europe, major stock indices also took a hit. The German DAX index lost 1.8%, with companies like Adidas, Puma, and Pandora seeing decreases of up to 10% in value. Major U.S. tech companies, including Apple, Nvidia, Tesla, and Amazon, also saw significant declines, ranging from 2.5% to 6%.

Experts are warning of the long-term economic fallout. Fitch Ratings' Olu Sonola described the tariffs as a "radical change" that could lead to a global recession.

The tariffs have also prompted a massive sell-off in digital currencies, according to Ryan Lee from Bitget Research. Ethereum and Solana dropped by 6%, he noted.

As markets remain volatile, attention will turn to how countries respond and whether these tariffs trigger a broader trade conflict.