ROLLUP: Trump Tariff Crash | Circle IPO | CoreWeave IPO | FDIC Crypto Greenlight
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Bankless nation. Welcome to the weekly roll up. Each week, I'm bringing on a different co host to help me go through the news. And this week, I have the pleasure of being joined by Alex Thorne, head of research at Galaxy Digital. Happy Friday, Alex. Happy, Liberation Day. Do you feel liberated today?
I feel liberated from my stock gains, David. But, yes, happy Liberation Day. Thanks for having me.
We are going through some of the most, chaotic, news events in recent memory at the very least. Maybe marked by this extremely iconic photo that I have up on the screen of Trump holding what looks like a photoshopped, like, board in his hands, but it is actually real. And it is a poster of reciprocal tariffs of just basically every single country in under the sun. And so we'll kinda go through some of the facts and I'll I'll get your takes on it, Alex. So yesterday, April 2, Donald Trump declared Liberation Day by announcing a series of significant tariffs aiming at reshaping US trade policy.
Yeah. It was a volatile day yesterday right after the close. Right? The president started talking in the Rose Garden at 4PM. So, you know, traders, investors everywhere, including here at Galaxy and our on our trading floor, very rare, but that the biggest sort of moment of the day was after equity market close. Look, I think dollar traded down to start and and thing risk traded up. Bitcoin went up up to, like, $88.05. Right? So, again, still sort of in that range. I I agree with your point here that even at these levels of $17.77 and $82.01 where Bitcoin is and ETH where ETH and Bitcoin are,
number. Yes. Than
tariffs. Yes. These are, trade imbalance times point o five. So Mhmm. Or or if that formula results in less than 10%, ten %. So it's it's actually solely the difference in our imports and exports with those countries, which is typically significantly higher than expected, the tariffs would be. So what what we thought we were gonna get was that they went country by country and said, okay. On corn, like, I don't know, India, you tariff us 50%, so we'll tariff you 50% on corn or generally or whatever. Right? Or if it's a non he kept talking about the non monetary trade barriers. Oh, okay. You don
Yeah. I think this is the thing that is really confusing and frustrating investors, policy people, because there's no coherence in, like, why we are doing the action. So Trump Trump wants to impose tariffs, and his justification is reciprocal tariffs, but what they are actually measuring downstream of this, like, interesting calculation that there was some drama on Twitter about which we'll talk about is actually it's just a trade imbalance is the motivation behind these crazy high tariffs. And the stated actions is not actually lining up with the words. And so this is maybe to go through some
Yeah. Some some early responses. EU preparing retaliatory measures if talks fail. China firmly opposes tariffs will respond. Japan calls tariffs regrettable, seeks exemption, promises swift action. Germany calls for the EU to pressure Trump. South Korea orders emergency support for their affected industries. Canada vows strong countermeasures. Some exemptions remain. Mexico rejects tit for tat tariffs and plans a broader response. UK is seeking a trade deal but keeps its options open. Australia will negotiate, avoids counter tariffs. Brazil evaluating responses might go to the World Trade Orga
Yeah. This, just a very large, like, gap between the tariffs charge I was
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