April 8, 2025 – The financial world is reeling as U.S. President Donald Trump’s latest reciprocal tariff policy takes effect, igniting concerns of an escalating global trade war. Announced earlier this week, the sweeping measure imposes a baseline 10% tariff on nearly all goods entering the United States, with significantly higher rates—up to 46%—targeting key trading partners like Vietnam.
The move, which Trump touts as a strategy to bolster American manufacturing and correct trade imbalances, has sent shockwaves through markets and drawn sharp criticism from economists and international leaders alike.
The policy, enacted under a declared national economic emergency, marks a dramatic shift in U.S. trade strategy. Trump has framed it as a necessary step to “bring jobs and factories back to America,” promising a revitalized domestic economy. However, the immediate fallout has been severe.
The U.S. stock market saw its worst day since the COVID crash of March 2020, with tech giants like Apple and NVIDIA shedding billions in value. Meanwhile, the VN-Index in Vietnam plummeted 12.5%—its steepest drop in 25 years—reflecting investor panic over the country’s export-driven economy.
Global reactions have been swift and defiant. China, facing additional tariffs, is reportedly preparing retaliatory measures, while the European Union and other major economies signal readiness to counter with their own trade barriers. Analysts warn that this tit-for-tat escalation could disrupt supply chains, spike consumer prices, and push fragile economies into recession. “This isn’t just a trade policy—it’s economic warfare,” said one market strategist, pointing to the potential unraveling of decades-old global trade norms.
In the crypto sphere, reactions have been mixed. Bitcoin dipped briefly to $82,000 before rebounding, hinting at its growing reputation as a hedge against traditional market turmoil. Unlike stocks, the crypto market has avoided a full-scale collapse, with some experts suggesting that Trump’s policies could inadvertently boost digital assets by weakening confidence in fiat currencies like the U.S. dollar.
As the world braces for the next moves in this high-stakes standoff, all eyes are on Washington—and the unpredictable administration steering the course.