The EU Markets today saw President Donald Trump fulfill his “Liberation Day” tariff hammer that sent ripples through global markets. The move punches through alliances, targeting not just rivals but close partners like the EU, Japan, and South Korea.
I was expecting markets to slide closer to 7% circuit-breaker territory, but I think markets are pricing in that Trump will backtrack on the tariffs. We think this is wrong.
Trump is a tariff man. He is fundamentally skeptical of global trade. He thinks a trade deficit means you’re being ripped off. This is something he has been saying since the 1980s. It’s probably his most consistent policy belief, maybe the only one. So I don’t see any indication he rolls back.
Here’s how the EU Markets today plan to retaliate and target the U.S. crypto sector after the tariff news.
EU Markets Today: Will Trump Change His Mind?
Those who will make money are those who will adapt and as quickly as possible.
Already leaders like French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni critiqued Trump’s tariff policy for its potential to destabilize the West and strengthen rival powers like China.
Macron suggested pausing French investments in the U.S. entirely until the tariffs receive clarification: “Brutal and unfounded, this decision demands a unified European stance to protect our interests.”
US tariffs list
– Ukraine is on the list
– Russia is NOT on the list
– Europe is on the list pic.twitter.com/hPA2JUwNny— Lord Bebo (@MyLordBebo) April 3, 2025
If U.S. investments are targeted because of the tariff, it could include U.S. crypto like XRP, SUI and Solana.
Ironically enough, those are the projects down hardest over the last week, with SUI and SOL both down double-digit percentages.
Trump has also said tariffs aren’t up for negotiation. This is very bearish. The only reason the market isn’t dumping more is that it is pricing in the expectation that countries will cave, de-escalate, and remove their tariffs.
The Best Trump Tariff Explanation You’ll Read Today
The Trump admin’ s tariff strategy is deficit divided by exports. In other words, even if you’re a poorer country like Cambodia or Sri Lanka, if you export a lot to the United States, you’re screwed.
Cambodia: 97%
- US exports to Cambodia: $321.6 M
- Cambodia exports to US: 12.7 B
- Ratio: 321.6M / 12.7 B = ~3%
Vietnam: 90%
- US exports to Vietnam: $13.1 B
- Vietnam exports to US: $136.6 B
- Ratio: 13.1B / 136.6B = ~10%
Sri Lanka: 88%
- US exports to Sri Lanka: $368.2 M
- Sri Lanka exports to US: $3.0 B
- Ratio: ~12%
Ostensibly, while this obliterates Cambodia, it brings back U.S. manufacturing so that $6 t-shirt aren’t made in some foreign sweatshop. They’re made in a domestic sweatshop. Kidding.
However, tariffs only work if managed carefully. Targeted tariffs with a staggered rollout and incentives to get companies to build industrial plants in the USA could actually accomplish what they say they want. But this sudden pedal-to-the-floor approach, rocketing the average import tariff to about 30% with no supports in place or incentives laid, might be myopic.
Wanting more industrial production is an absolutely valid goal. To avoid alienating our trade partners, limit it to a few targeted products and countries. A flat big percentage on everything in every country is just going to unite everyone against us. Why would anyone trust us again?
Deutsche Bank already said the U,S, will suffer more than Europe.
EU Markets Today: Final Thoughts
“It’s worse now to be a U.S. ally than to be an adversary. At least you know what you’re getting as an adversary.” – Thitinan Pongsudhirak of Thailand’s Chulalongkorn University
Countries like Cambodia, Vietnam, and Thailand, hailed as alternatives to China’s manufacturing dominance, now face crushing levies of up to 49%.
Meanwhile, the EU, affected by tariffs on 70% of its exports to the US, plans to retaliate if resolutions cannot be found through talks. They may also freeze out U.S. investments in stocks and cryptocurrencies entirely.
And what was once an attempt to weaken China’s grip might end up tightening it, but we’ll see.
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Key Takeaways
- EU Markets today saw President Donald Trump fulfill his “Liberation Day” tariff hammer that sent ripples through global crypto markets.
- Countries like Cambodia, Vietnam, and Thailand, hailed as alternatives to China’s manufacturing dominance, now face crushing levies of up to 49%. ”
- Meanwhile, the EU, affected by tariffs on 70% of its exports to the US, plans to retaliate if resolutions cannot be found through talks. They may also freeze out U.S. investments in stocks and cryptocurrencies entirely.
The post Revenge of the EuroPoor? EU Markets Today Retaliate to Crush US Crypto Coins appeared first on 99Bitcoins.
