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Breaking Down the 2025 Trump Economic Plan (Key Takeaways for Traders)
Apr 14, 2025
The economic policies of former President Donald Trump significantly impacted the global economy and markets. In particular, the Trump’s tariffs 2025 impacted trade dynamics and the financial performance of targeted sectors. With Trump running for president again in 2024, many traders wonder what the 2025 Trump economic plan will entail and how it will impact the economy, traders, and their bottom line.
In this guide, we'll discuss this potential economic plan based on the former president's previous policies and upcoming campaign proposals to help you prepare for what may lie ahead. The GoMoons AI-powered economic calendar can help you quickly track and assess how the Trump Economic Plan evolves before and after the next election.
Table of Contents
What Is Trump’s 2025 Economic Plan?
Tariff-Driven Trade Policy: An Aggressive Plan to Reshape U.S. Trade
Trump’s 2025 economic plan puts tariffs front and center as both a revenue-generating tool and a geopolitical strategy. On April 2, 2025, Trump signed an executive order enforcing a minimum 10% tariff on all U.S. imports, regardless of origin. This blanket tariff is aimed at discouraging dependence on foreign manufacturing and boosting domestic industry competitiveness.
For 57 specific countries, including China, Vietnam, and others viewed as trade imbalance contributors or strategic competitors, higher tariffs were introduced (ranging from 25% to 60%). These took effect April 9, 2025. The strategic objectives of this aggressive plan include protecting U.S. manufacturers from overseas dumping; encouraging reshoring of key industries; leveraging tariffs to pressure countries into more favorable trade agreements; and funding U.S. spending without raising internal taxes. According to early estimates, GDP may decline by 8% in the long run due to reduced trade efficiency. Wages may fall by 7%, as companies adjust to higher input costs. However, the U.S. could generate over $5.2 trillion in tariff revenue over 10 years, offsetting federal deficits.
Aggressive Tax Policy Reforms: Trump Seeks to Extend Key Tax Cuts and Simplify the Tax Code
In line with his earlier policies, Trump is pushing a pro-growth, low-tax agenda, with some bold extensions. Trump seeks to permanently extend the provisions of the 2017 Tax Cuts and Jobs Act (TCJA) for individuals and businesses. This includes lower individual income tax rates, expanded standard deductions, and increased estate tax exemptions. Congress is pursuing these tax cuts through budget reconciliation, a legislative strategy enabling tax reform to pass the Senate with a simple majority. This allows up to $5.3 trillion in tax reductions, even if not fully funded.
Project 2025 Blueprint: A Conservative Roadmap to Support Trump’s Next Term
Alongside Trump’s formal plans, Project 2025—a policy roadmap created by conservative think tanks to align with Trump’s next term—includes tax overhauls like a flat income tax model for simplicity; a reduction or removal of corporate taxes to boost investment; and a possible shift toward consumption-based taxes like a national sales tax. Project 2025 is split on trade: some factions promote extensive tariffs to protect the U.S. trade balance, while others advocate free trade with strategic partners.
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Impact of Trump's Economic Plan on Forex and Crypto Markets
Forex Market Turbulence Amid Tariff Escalations
Trump's 10% blanket tariff on all U.S. imports, alongside boosted tariffs on 57 specific countries, kicked off chaos in the global forex markets. The measures raised fears of a renewed global trade war, reminiscent of Trump’s first term. In the immediate aftermath of the announcement, the U.S. dollar (USD) weakened against traditional safe-haven currencies like the Japanese yen (JPY) and Swiss franc (CHF), as investors shifted to lower-risk assets. The USD/JPY pair dropped from 152.00 to 148.30 within 48 hours, a move not seen since early 2022, as traders priced in the risk of global recessionary shocks.
The dollar’s decline wasn’t just due to trade concerns — investors also anticipated slower U.S. economic growth, delayed Fed rate hikes, and potential retaliation from key partners like the EU and China. Emerging Markets Hit Hard: The Chinese yuan (CNY), Mexican peso (MXN), and Brazilian real (BRL) all depreciated sharply. The USD/MXN pair climbed past 18.90 from 18.10 in just four days, as traders braced for Mexico's economy to absorb the cost of reduced exports to the U.S. The Turkish lira (TRY) and South African rand (ZAR) also faced pressure from investors broadly exiting emerging market positions. Smart traders used this advantage by shorting weak currencies against the JPY and CHF during the initial market panic and rotating positions as sentiment adjusted post-announcement.
Cryptocurrency Market Reactions
Like forex, crypto markets reacted sharply — debunking the myth that digital assets are immune to macroeconomic events. Bitcoin (BTC) fell from its 2025 peak of over $100,000 to $77,000 by April 8, just six days after Trump’s tariff executive order. This crash wasn’t due to protocol issues or regulation — it was macro-driven: Institutional investors, who now dominate crypto markets, sold off their holdings alongside tech stocks. Fears that tariffs would stifle global economic growth and reduce liquidity prompted a flight to cash, bonds, and gold.
On April 9, Trump announced a 90-day pause on reciprocal tariffs for most countries (notably excluding China and Canada), which injected optimism across global markets. Bitcoin rebounded, climbing above $82,000, while Ethereum surged 12%, fueled by renewed risk appetite and a short squeeze on overleveraged short positions. The announcement gave traders a narrative to lean on — that the worst of the trade war might be avoidable, and the U.S. might still engage in negotiation rather than escalation. Tools like GoMoon flagged smart money accumulation in significant assets 24 hours before the recovery. Wallet tracking and volume spike data helped seasoned traders enter early and exit profitably before retail caught on.
The 90-Day Tariff Pause and Market Relief
The 90-day moratorium on new reciprocal tariffs acted as a circuit breaker for global risk markets, restoring temporary calm and encouraging buying activity. U.S. indices like the S&P 500 and Dow Jones Industrial Average saw 4–6% rebounds over the following week, as tech stocks, industrials, and exporters regained lost ground.
Asian markets like the Nikkei and Hang Seng also climbed, buoyed by hope that the U.S. would not follow through on threats targeting their exports. The USD stabilized against major currencies. Pairs like EUR/USD, which had surged on dollar weakness, retraced as traders unwound panic trades. Emerging market currencies like the MXN and INR saw moderate recoveries, though they remained sensitive to whether they were included in the 90-day pause.
Notably, Bitcoin wasn’t the only winner—GoMoon reported a +43% wallet activity increase on ICP, funding rates turning positive on major exchanges, and whale addresses ending their sell-off streak and reaccumulating. Traders who followed GoMoon’s macro-trend dashboard saw correlations tighten between Bitcoin and traditional indices, allowing them to time entries based on stock market news, a strategy previously rare in crypto.
GoMoon: The Future of Economic Event Trading
GoMoon transforms economic calendar data with AI-powered insights for smarter trading decisions. Our platform analyzes global events and rates their market impact on a scale of 1-10, helping you understand how they'll affect various assets. We've packed everything traders need: Live economic event streaming, custom notifications, and historical event replay with TradingView charts. What sets us apart is our comprehensive approach to event analysis.
Whether you're tracking the impact of major economic announcements or comparing forecast data with actual outcomes, GoMoon provides clear, actionable insights. You can personalize your calendar, stream live meetings directly on the platform, and analyze historical events like the dot-com bubble or COVID-19 crash to understand market reactions better. GoMoon clarifies the complex world of economic events for traders seeking data-driven decisions. Get started for free to get AI-powered economic insights today.
How Traders Can Stay Ahead Amid Tariffs and Market Volatility
Track Global Macro Developments in Real-Time to Make Informed Trading Decisions
Traders must monitor macroeconomic policies like tariffs, sanctions, and trade agreements closely, especially those involving major players like the U.S., China, Canada, and the EU. GoMoon’s Global Macro Tracker provides alerts when major announcements occur, including executive orders, economic summits, and import/export policy shifts. The tool aggregates updates from trade news, government portals, and financial analysts, helping traders react faster than those relying on traditional news cycles.
Follow the Smart Money
During volatile periods, institutional investors often reallocate funds across asset classes — from forex and equities to crypto and commodities. GoMoon’s Wallet Tracker shows where large investors move capital, especially in cryptocurrencies like Bitcoin, Ethereum, and ICP. If whale wallets begin accumulating a specific token after a tariff announcement or market dip, it could signal a bounce or recovery phase that retail traders can ride early.
Use Volume and Volatility Signals to Identify Opportunities
Spikes in trading volume and unusual volatility often occur just before or after tariff-related events. GoMoon’s Trading Signal Panel helps traders identify these moments by highlighting coins with surging volume, price breakouts, or sudden directional shifts. This is especially useful for timing entries and exits on assets like ICP, which tend to move in response to macro shifts and investor sentiment.
Protect Your Capital with Smart Positioning
Tariff uncertainty introduces risk across the board — currencies, stocks, and digital assets can all swing unexpectedly. Use GoMoon’s Risk Management Dashboard to analyze volatility metrics, set dynamic stop losses, and plan your exposure based on market temperature. It also allows traders to simulate how their portfolio would respond to shocks like a 25% tariff on imports or a 10% drop in Bitcoin.
Identify Assets Likely to Benefit from De-globalization
Specific cryptocurrencies and decentralized protocols — like ICP — gain relevance when global supply chains fragment due to tariffs. GoMoon’s Sector Rotation Tool helps identify when the market is rotating capital into these categories, signaling short-term pumps or long-term trend shifts. For example, following the 90-day tariff pause, GoMoon flagged ICP, Filecoin, and Render as top gainers due to renewed focus on decentralized infrastructure.
Discover GoMoon: Your AI-Powered Economic Calendar for Trump Tariff Trading
GoMoon transforms economic calendar data with AI-powered insights for smarter trading decisions. Our platform analyzes global events and rates their market impact on a scale of 1-10, helping you understand how they'll affect various assets. We've packed everything traders need: Live economic event streaming, custom notifications, and historical event replay with TradingView charts. What sets us apart is our comprehensive approach to event analysis.
Whether you're tracking the impact of major economic announcements or comparing forecast data with actual outcomes, GoMoon provides clear, actionable insights. You can personalize your calendar, stream live meetings directly on the platform, and analyze historical events like the dot-com bubble or COVID-19 crash to understand market reactions better. GoMoon clarifies the complex world of economic events for traders seeking data-driven decisions. Get started for free to get AI-powered economic insights today.
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Use Our AI-powered Economic Calendar Tool for Free Today
The Trump tariffs are changing how traders buy and sell stocks and assets. GoMoon is an AI-powered economic calendar that tracks the impact of economic announcements on various assets with a special focus on the new tariffs and their impact on the economy. The platform gives traders live updates on economic announcements, historical data on how these events affected the markets in the past, and even customizable alerts to help them prepare for the following big announcement.
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