President Trump’s new “reciprocal tariffs” policy, which imposes a 10% tariff on all trading partners, has sent shockwaves through the financial markets. The move, one of the most comprehensive tariffs in decades, aims to address US trade deficits. While Bitcoin initially surged following the announcement before later experiencing a sharp decline, concerns about increased inflation and potential market volatility have emerged. Experts warn that this policy will likely increase import costs and lead to a 2-3% GDP tax equivalent. 15 minutes after Trump’s announcement on April 3, 2025, US stock futures dropped by $2 trillion, raising alarm bells for investors about the potential economic impact of the tariffs. Bill Adams, Chief Economist at Comerica Bank, estimates that the tariffs could trigger a significant shift in fiscal dynamics as import costs rise. The policy’s immediate effects include increased tax burdens on companies and potentially heightened inflationary pressures, with many experts anticipating retaliatory actions from trading partners. This has also led to an initial surge in gold prices as investors seek safe-haven assets amid geopolitical uncertainty. Coincu research analysts highlight the potential for increased regulatory scrutiny during this period of macroeconomic shifts and speculate about how these policies may strain US trade relations further. The overall reaction has been swift, with Bitcoin experiencing a significant drop and raising concerns about the market’s volatility.