Global financial markets are reeling in overnight trading, with crypto also seeing sharp declines, after President Donald Trump announced sweeping reciprocal tariffs affecting nearly 200 U.S. trading partners.

The new policy imposes a baseline 10% tariff on imports, exempting USMCA compliant goods, while some countries will see tariffs rise as high as 49%. Notably, there will be a 25% tariff on all foreign-made cars. The reciprocal tariffs are set to take effect on April 9, while the baseline 10% tariff will hit on April 5.

"For decades starting in 1934, U.S. trade policy has been organized around the principle of reciprocity," Trump wrote in his executive order. "...However, despite a commitment to the principle of reciprocity, the trading relationship between the United States and its trading partners has become highly unbalanced, particularly in recent years."

The broader crypto market has declined 3.6% in the past 24 hours, with the GMCI 30 index down 4.6% as of publication. After nearing the $88,000 level earlier in the day, the price of bitcoin was down 3% to $82,600, according to The Block's price data.

Altcoins took a bigger hit in the hours after Trump's announcement. Ether was down more than 6% to fall back under $1,800, while Solana dropped 6.5% to the $118 area. Among the top 10 cryptos by market cap, Dogecoin (down 6.2%), XRP (5.5%), BNB (3.7%), cardano (5.8%), and tron (2%) all saw declines, though some fared slightly better than others.

Of note, the Official Trump memecoin sold off more than 12% to fall under $10, according to The Block's TRUMP data.

Futures for the Dow, Nasdaq, and S&P 500 dropped 2%-4% in after-hours trading, signaling a rough market open Thursday. Bellwethers such as Apple (down 7%), Amazon (6%) and Nvidia (5%) also sold off hard, according to CNBC.

President Trump’s tariff plans will reach all parts of the economy, and crypto will be affected in some surprising ways, according to Two Prime Digital Assets CEO Alexander Blume.

"The bitcoin mining industry depends exclusively on ASIC computer chips that come from China," Blume told The Block. "Hikes on tariffs for these products will make production costs for miners higher and their businesses less profitable. As a result, these stocks may struggle to compete with their non-U.S. peers."

It should be noted that many U.S.-based mining companies are purchasing miners from manufacturing facilities outside of China, and the chips in those miners are generally manufactured outside of China.

Hardware suppliers will likely try to pass on higher costs stemming from tariffs, which could increase the capital needed to stay competitive, Hive Digital CFO Darcy Daubaras told The Block. However, the economics of Bitcoin mining are driven by global competition and the fixed supply of Bitcoin itself, meaning miners cannot simply "pass on" costs in the traditional sense.

"Higher hardware prices in the U.S. will likely push out less efficient miners, potentially leading to lower network difficulty and improved profitability for those with lower operational costs," Daubaras said.

Mining stocks like Core Scientific (8.5%), MARA (7%), Riot Platforms (5.6%) and Hive Digital (5.6%) were also trading lower after hours.

Economic uncertainty and inflation lead to a shift in investment strategies, and Blume "suspects more money will move toward stores of wealth like gold and bitcoin until we see greater economic stability."

The increased income from these tariffs could be a way the U.S. government acquires more bitcoin, according to Blume. "Trump has given an executive order to explore acquiring bitcoin so long as it is done in budget-neutral ways," he said. "This new source of federal income may prove to be the solution."