On April 2, 2025, President Donald Trump announced new tariffs starting at a minimum of 10% on all countries levying tariffs on U.S. goods, causing immediate turmoil in financial markets. Bitcoin dropped from a session high of $88,500 to around $83,000, and Ether fell significantly. While some market analysts believe the tariffs may not have as severe a long-term effect as feared, American crypto miners face challenges due to increased costs on imported mining equipment. Critics raise concerns about the administration's methodology behind the tariff rates and the potential for a recession, with Goldman Sachs estimating a 35% chance prior to the announcement and betting markets suggesting it has risen to over 50%. The tariffs have drawn comparisons to the Smoot-Hawley Tariff Act, which is seen as detrimental to the economy during the Great Depression, raising questions about the current administration's economic strategies.

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