Economist Warns Trump Tariffs May Trigger 10% Market Selloff

Economist Alex Krüger has expressed grave concerns about the economic policies of US President Donald Trump, asserting that the country is on the brink of significant economic turmoil. Krüger, who has a substantial following on the social media platform X, has warned that Trump's tariff policies are leading to a massive selloff of US assets, describing the situation as one of the most insane financial events in modern history, second only to the coronavirus crash.

Krüger's analysis suggests that the US is effectively committing economic suicide by pursuing these tariff policies. He emphasizes that if Trump does not reverse course on the tariffs, the likelihood of the US entering a serious recession is high. This, in turn, could lead to a landslide victory for the Democratic Party in the midterm elections, potentially resulting in Trump's impeachment and a rollback of the tariffs, which could plunge the US towards socialism.

Krüger also notes that Bitcoin (BTC) may be decoupling from the stock market, as the cryptocurrency is showing signs of breaking out while stocks are plummeting. He is open to the possibility that Bitcoin is taking on its final form, either due to market dynamics or leveraging by investors. Krüger has laid out several possible economic scenarios for the coming months, including a potential rally for Bitcoin to the $92,000 level.

In one scenario, Krüger envisions a 10% tariff for most goods along with a deal with China by early July, which could lead to a market surge. In another scenario, he predicts that high tariffs with Europe and China remaining in place could result in a market bounce followed by pain and lower lows a few months out, as the economy starts to roll over and a recession hits. Krüger is betting on a Bitcoin bounce since last week, suggesting that once the $88,000 level is broken, the cryptocurrency could quickly reach $92,000, providing an ideal opportunity to re-evaluate the market.