- Trump’s April 2 tariffs could trigger a 10-15% market drop.
- Bitcoin rises to $87,230 as investors hedge against tariff volatility.
- Mexico seeks to mitigate economic fallout from US tariffs on key industries.
As the April 2 tariff deadline approaches, experts are warning of economic collapse. The “Liberation Day” tariffs will target trade barriers but could cause a market crash, with some predicting a 10-15% drop.
Meanwhile, Bitcoin is up to $87,230 as investors prepare for the tariff volatility. Mexico is making diplomatic efforts to calm things down, but the previous tariffs are already biting U.S. industries. Here’s how this will play out in the markets, including stocks and cryptocurrencies.
Tariff Tensions and Financial Markets
The tariffs to be implemented on April 2 are causing a big mess in financial markets. Analysts say if the tariffs lead to more global trade disruptions, the markets will see big drops. A 10-15% decline is expected across indices, especially those affected by trade policies.
For investors, it’s all about hedging now. Especially with Bitcoin. Analysts say cryptocurrencies (including Bitcoin) will be a safe haven asset during the volatility caused by Trump’s tariff plan. Bitcoin is showing resilience, up 3.33% to $87,230 as of March 25, 2025. While it’s still volatile, it’s seen as a hedge against economic instability caused by these new tariffs.
Bitcoin as a Hedge
As trade tensions rise, Bitcoin and other crypto are back in the spotlight. Bitcoin’s $87,230 price is a response to the economic uncertainty around Trump’s tariff plans. It’s down 20% from its all-time high, but it’s one of the assets investors are holding onto as they prepare for the volatility. Edul Patel, CEO of Mudrex, says Bitcoin can trade sideways till April due to broader macro concerns.
Patel points out Bitcoin’s strong support at $81,600 and the next key resistance at $87,500. It’s holding on to its value despite global economic worries, so its store of value property might be more important in uncertain times. Moreover, Bitcoin is being watched as a barometer for broader market sentiment. If tariffs lead to a prolonged market downturn, demand for alternative investments like Bitcoin will continue to rise, making it a digital asset alternative to traditional markets.
Mexico’s Diplomatic Efforts and Economic Concerns
Mexico is trying to minimize the economic impact of the tariff plan. Trade is the backbone of the US-Mexico relationship, so Mexico is trying to spare key industries, especially auto and agriculture. But the broader implications of Trump’s tariffs are already felt by US industries with increased production costs from previous tariff measures.
Analysts say this added pressure on US industries will exacerbate inflationary worries and slow down economic growth. These will compound the existing market volatility, making it even harder for investors to navigate the uncertainty ahead.
But some parts of the market are resilient. Retail is less affected by tariffs, as many tech giants are more insulated from the direct impact of trade wars. But the global economy is at risk, and financial markets will react strongly to any new tariff-related news.
As the US heads into its April 2 tariff deadline, markets are in for a wild ride. Analysts expect a 10-15% drop in major indices. Bitcoin’s rise is a sign of growing investor confidence in digital assets as a hedge against global economic instability.
