President Donald Trump’s impending tariffs strategy will dictate the direction of the markets, according to economist Alex Krüger.
Trump says next Wednesday, April 2nd, will be “Liberation Day in America,” when he’ll slap tariffs on countries around the world.
However, the Trump Administration has sent mixed signals about the severity of those upcoming tariffs.
Krüger tells his 208,500 followers on the social media platform X that April 2nd “will be similar to election night” in its impact on the markets, potentially including crypto markets.
“It is the biggest event of the year by an order of magnitude. 10x more important than any FOMC (Federal Open Market Committee), which is a lot. And anything can happen.
Trump could go soft, in which case markets would rally fast and furiously. Or could go half-way, adding uncertainty on timelines, in which case markets would take out the stops of all longs and shorts. Or go all out, in which case markets could easily crash another 10% to 15%, fast.
In the worst-case scenario, sh*t would hit the fan then tariffs would start coming off as Trump negotiates hard in the following month, in which case peak negativity would hit around week two of April, which would coincide with US Tax Day.
The US economy is still strong, but will highly likely slow down due to tariffs regardless of the path Trump chooses. But every economist already expects a very sharp economic slow-down into year-end. Which means, it is already largely priced in.”
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