The 104% tariff nuclear bomb triggered a trade war, and the market fell in panic! Is the Fed's closed-door meeting to save the market?

On April 8, 2025, global financial markets were violently shaken by the escalation of the US-China trade war. The US announced that it would impose an additional 50% tariff on Chinese goods starting from April 9, bringing the total tariff to 104%, as China did not revoke the 34% retaliatory tariffs by Tuesday noon. This move was seen as a signal of economic decoupling, and market optimism quickly collapsed in the early trading session. BTC, which had risen to 81,243 USDT yesterday, fell back to 76,413 USDT. Meanwhile, the Federal Reserve will hold a closed-door meeting on April 7, sparking speculation about whether they are preparing for an emergency rate cut to address potential crises.

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104% Tariff Takes Effect: Trade War Enters "Nuclear" Mode

Trump's tariff policy on China has been incrementally increased: 10% from February, an additional 10% in March, 34% last week, and now another 50%, totaling 104%. Such high tariffs mean that both sides may completely halt trade relations.

China's response: "There are no winners in a trade war, and protectionism will only drag down the global economy. China will not provoke, but will absolutely not back down and will take all necessary measures to defend its interests." This tough stance shows that both sides have no room for compromise. If the trade war fully erupts, the global supply chain will face severe damage, and the risk of economic recession will sharply increase.

The market reacted swiftly. US stocks rose in early trading on Tuesday due to negotiation hopes, but after the White House confirmed the high tariffs would take immediate effect, the three major indices plummeted in the closing session. The Dow Jones fell 0.84% to 37,645.59 points, the S&P 500 dropped 1.57% to 4,982.77 points, and the Nasdaq fell 2.15% to 15,267.91 points. Apple's stock price dropped 5% in the closing session due to supply chain risks. BTC rose yesterday but fell back to 76,413 USDT, a drop of about 6%, highlighting the rise in risk-averse sentiment.