Trump Liberation Day: Stocks Crash, Cryptocurrencies Rise and Gold Soars

The global market, including cryptocurrencies, is anticipating significant volatility and price fluctuations ahead of the highly awaited “Liberation Day” tariff battle of U.S. President Donald Trump on Wednesday. The U.S. government under Trump is ready to announce new retaliatory tariffs against more than 25 countries, including some of its strongest allies. Concerns about impending inflation and a lack of clear information regarding tariff policies have led to an unstable atmosphere in the global market as experts predict a bloody conflict will occur in the middle of this week. In preparation for Liberation Day, Wall Street had a chaotic day, fluctuating between gains and losses before closing a little higher. The S&P 500 index has seen a significant decline of nearly 3% over a week and nearly 4% over a month. The index experienced a slight recovery of 0.38% in one day, but people have declared that this is the worst quarter since 2009 for the S&P 500.

The Nasdaq 100 index has shown some positivity since a day after it fell 4% over the past 5 days, and not only that; the market has dropped 6% in a month, leaving traders in shock. India is also not immune to the effects of the global market downturn, as the Sensex dropped 1,400 points (nearly 2%) and Nifty lost 350 points (1.5%) on April 1. IT and pharmaceutical stocks, which are heavily reliant on the U.S. market, were the most affected. At the same time, India VIX—often referred to as the market’s fear gauge—spiked 8%, indicating that the turmoil is not over yet. However, cryptocurrencies do not have much volatility. Bitcoin edged up to $83,000, an increase of about 1-2%, while Ethereum remains at $1,800. The overall cryptocurrency market capitalization has barely changed, only increasing by 0.58% to $2.7 trillion. Meanwhile, gold is experiencing a significant price surge. With panic in the air, investors are flocking to safe-haven assets, pushing the price up to ₹93,000 for 10 grams—and if the instability persists, this price increase will not stop anytime soon. Trump wants to respond to countries that impose higher import tariffs on U.S. goods. According to Treasury Secretary Scott Bessent, the list known as “Dirty 15” includes the EU, China, India, South Korea, Japan, Brazil, Mexico, and Vietnam. But what is the real challenge? The U.S. has trade agreements with over 20 countries and more than 12,500 types of tariffs—making comprehensive tariff imposition a logistical nightmare. People are talking about applying a common tariff for “everything, everywhere, at the same time,” but that could cause inflation and disrupt supply chains. As the United States tightens new trade restrictions, China is taking the opposite approach—hinting at increasing imports from India. For Indian exporters concerned about Trump’s tariffs, this could be a necessary reprieve. It also comes at a time when India and China are trying to mend ties after the border standoff in 2020. But not everyone receives aid from Trump. The gem and jewelry industry in India, which exports $33 billion worth of products each year, could be severely impacted. If tariffs increase, businesses dealing in cut and polished diamonds, gold jewelry, and lab-grown diamonds may face a bumpy road ahead. Trump is expected to announce new tax rates at 4 PM Eastern Time on April 2 during an event at the White House Rose Garden titled ‘Make America Prosperous Again.’ According to Press Secretary Karoline Leavitt, this tax will take effect immediately and begin collecting on Thursday. With Trump’s tariffs just a few hours away, the market is in a state of tension. If this trade war worsens, prepare for many sell-offs in the stock market, higher prices, and economic chaos worldwide. Right now, the only thing that’s clear is that nothing is clear.