Donald Trump’s “Liberation Day” announcement introduced tariffs on over 180 countries, leading to sharp market reactions.
Donald Trump’s “Liberation Day” announcement introduced tariffs on over 180 countries, leading to sharp market reactions. Bitcoin dropped 5.2%, Ethereum fell 6.5%, and Dogecoin slipped 9.8%. The Official Trump (TRUMP) meme coin, launched on Solana before Trump’s inauguration, dropped 15.4% to a market cap of $1.78 billion, levels only seen in the first few hours of its launch. Initially promoted by Trump as his official token, it reached a $15.18 billion market cap on its first day but tumbled after First Lady Melania Trump introduced her own meme coin, later linked to the issuers of the controversial LIBRA token.
The tariff announcement drew strong reactions. Peter Tchir, head of macro strategy at Academy Securities, called the figures a “disaster.” Author James Surowiecki questioned the administration’s tariff calculations. Cambodia faced the highest tariff at 49%, followed by Laos at 48% and Madagascar at 47%. Some unexpected entries appeared on the list, including the uninhabited Heard and McDonald Islands, an Australian territory, which was hit with a 10% tariff. The White House later clarified that the islands were included because they are Australian territories.
Trump defended the tariffs at the Liberation Day event, saying, “For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike. Our country and its taxpayers have been ripped off for more than 50 years. But it is not going to happen anymore.” The White House stated that the tariffs were calculated based on the “combined rate of all their tariffs and non-monetary barriers” imposed on the United States. White House Deputy Press Secretary Kush Desai explained in a post that the tariff rates were determined by taking the trade deficit with each country and dividing it by total imports.
TRUMP’s decline follows a pattern of instability since its launch. The token crashed by 25% in early March after Trump announced an initial round of tariffs, while Bitcoin dropped 10% at the time. The meme coin’s sharp drop on Liberation Day shows its close connection to Trump’s political decisions. Investors had initially expected the token to benefit from Trump’s administration, given his past positive stance on cryptocurrency.
Markets continue to react to the tariff announcement, with concerns over its broader economic impact. The TRUMP meme coin’s sharp decline reflects uncertainty among investors, and whether it will recover remains unclear. Crypto analysts are watching how Trump’s policies affect digital assets, while financial experts are assessing the long-term consequences of the tariffs on global trade.
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