Why would Trump's 25% tax on cars lead to a market correction?
Concerns about trade wars + risks of economic recession
Inflationary pressures intensifying, Federal Reserve tightening policies
Car price increases → CPI rises
Uncertainty from trade wars may trigger capital outflows from risk assets, shifting towards safe-haven assets like government bonds and gold.
Market liquidity contraction: If tariffs drive up inflation, and the Federal Reserve maintains high interest rates, the liquidity of the dollar decreases, potentially putting pressure on the crypto market (which relies on cheap funds).
Withdrawal of leveraged funds: In a high-interest environment, the cost of leveraged cryptocurrency trading increases, reducing speculative funds.
If U.S. stocks plummet due to the trade war, the crypto market may also decline simultaneously.
If Trump's policies are implemented, short-term market volatility will increase, but long-term outcomes still depend on the Federal Reserve's responses and global economic resilience.
The Ether space investment on the 25th successfully took profits last night, gaining around 60 points.
Daily investments continue to yield profits. For friends feeling lost and wanting to recover losses, leave a comment with 111 on 🚗