- Economist Alex Krüger predicts a fast market rally or crash on April 2nd, depending on President Trump’s tariff strategy.
- Markets could experience high volatility or a sharp downturn as Trump’s tariff announcement looms, with mixed investor expectations.
Economist Alex Krüger has weighed in on President Donald Trump’s upcoming tariff strategy, predicting that the market could experience a shift depending on the President’s decisions. With the much-anticipated tariffs set to be announced on April 2nd, Krüger suggests that the markets may either surge or face volatility, depending on how aggressive the tariff measures are.
Trump’s “Liberation Day” speech on April 2nd is expected to set the stage for global market movements, especially in the cryptocurrency and wider financial markets. While Trump has teased that tariffs will be levied on several countries, the Trump Administration’s mixed messaging has left many investors uncertain about the precise nature of these tariffs.
Krüger, who has a large following on social media, stated that the announcement could be as consequential as a national election. He described April 2nd as the “biggest event of the year by an order of magnitude,” with the possibility to move markets in unpredictable ways.
Potential Market Scenarios: From a Boom to a Bust
Krüger outlined several possible scenarios for how markets might react to the tariffs. If President Trump opts for a milder approach with less severe tariffs, Krüger believes markets could rally fast and furiously, suggesting a positive economic outlook in the short term.
Market views update
Markets crawl higher if headlines remain neutral to benign this week, then freeze as we await April 2nd, which is reciprocal tariffs day announcement or, as Trump called it, Liberation Day.
April 2nd is similar to election night. It is the biggest event of…
— Alex Krüger (@krugermacro) March 23, 2025
However, if Trump’s announcement, as reported by ETHNews, leads to a more unclear strategy, markets might react with confusion and volatility, leading to price movements and activating the stop-loss orders of both long and short positions. This outcome could create intense market instability as investors struggle to interpret the timing and severity of the tariffs.
On the other hand, if Trump decides to impose severe tariffs, it could prompt a market crash. Krüger warns that a sudden move could push markets down by 10% to 15%. This would likely result in declining investor confidence, with side effects throughout various markets, including equities and cryptocurrencies.
However, according to Krüger, the worst-case scenario would involve an immediate market collapse, followed by a hard negotiation process between the U.S. and its trade partners. If the President continues implementing tariffs aggressively, the U.S. economy could face a sharp slowdown as businesses and consumers adjust to the new trade environment.
Krüger points out that the economic downturn could coincide with the U.S. Tax Day, adding another layer of uncertainty. While the U.S. economy remains strong, he believes that the tariff measures will slow down growth, regardless of how Trump approaches the situation.
What’s Priced In and What to Expect
Krüger further noted that many economists are already factoring in a sharp slowdown in economic activity into their projections for the rest of the year. He explained that the anticipation of this downturn has already been “priced in,” meaning that the market has adjusted for the potential impacts of the tariffs. However, how markets respond to the actual announcement remains to be seen.
Krüger noted that the market will likely remain in a holding pattern until the tariffs are officially announced on April 2nd. Investors should brace themselves for potential volatility, as the day could bring a series of unexpected developments.
The post Economist Alex Krüger Predicts ‘Fast and Furious’ Market Rally if Trump Acts appeared first on ETHNews.
