How Trump's Random Decisions Impacted Bullrun 2025.
US President Donald Trump's decisions during his second term, which began in January 2025, sometimes described as "random" due to their speed and controversial nature, had a significant impact on global financial markets, including the US stock market and the cryptocurrency "Bullrun."
1. Tariffs and Trade Wars.
Decisions: Trump imposed wide-ranging tariffs on several countries, including 25% on Canada and Mexico, and up to 125% on China, along with tariffs of varying rates on other countries, such as 10% on the United Kingdom and some Arab countries, 31% on Switzerland, and 50% on countries like Lesotho. This move was described by Trump as "Liberation Day," with the aim of boosting US domestic industries.
Impact on Bolran:
Initial Volatility: These tariffs created uncertainty in global markets, causing major stock indices like the Dow Jones and Nasdaq to decline in the first weeks after the announcement, as investors feared a slowdown in global trade and increased inflation.
Temporary Recovery: After Trump announced a 90-day moratorium on tariffs on certain countries (excluding China), markets, particularly in the Asia-Pacific region, saw significant gains, with Tokyo's Nikkei index rising by nearly 8%. This provided a short-term boost to Bolran in US markets, as companies dependent on international trade benefited from this temporary optimism.
Long-Term Impact: However, the World Trade Organization and economists have warned that continued trade wars could slow global economic growth, threatening Bolran's sustainability. For example, the US consumer price index rose to 5.8% year-on-year in the first quarter of 2025, while GDP growth fell to just 1.2%, indicating the risk of "stagflation."
2. Tax and Spending Policies.
Decisions: Trump promised massive tax cuts, similar to the 2017 Tax Cuts Act, which could increase the federal budget deficit to unprecedented levels.