Trump’s Tariffs Are Here – And They’re Not Just for Show 🚨

At first, many assumed Trump’s tariff threats were just a negotiation tactic (yep, us too). But turns out—he meant business.

And as of today, those tariffs are officially in effect, hiking import costs from Canada, Mexico, and China—the US’ three largest trading partners.

📉 Biggest Tariff Hike Since 1930 = Economic Chaos 📉

In just 4 weeks, US Q1 GDP expectations crashed from +3.9% to -2.8%, rattling markets, hitting crypto hard, and erasing all post-election stock market gains.

Cool. But why does this threaten our ‘silver lining thesis’?

🔍 The Fed’s Dilemma: Rock, Meet Hard Place 🔍

The Federal Reserve needs an excuse to cut rates—which means they want to see:
✅ A weakening economy
❌ Lower inflation

Here’s the problem: Tariffs can weaken the economy, BUT they also push inflation up.

And that’s a nightmare for the Fed. Cutting rates and printing money adds inflationary pressure, which would only make things worse in a tariff-driven inflation scenario.

💡 The Solution? Short-Lived Tariffs 💡

If the Trump administration uses tariffs as leverage and ultimately negotiates them away, we could have the best of both worlds:

🚀 No tariffs + A Fed ready to cut aggressively = Liquidity boost + Market rally

🎉 The Silver Lining Still Stands! 🎉

But here’s the best part—we don’t even need the Fed to start cutting to see global liquidity rise.

🇨🇳 China and 🇺🇸 the US Treasury have already started injecting fresh capital, and other countries are likely to follow suit.

So yeah—short-term pain, but long-term gain. The future? Still looking bright. 😎