Trump's tariff escalation exposes 'deeper fractures' in the global financial system.

Trump's tariff escalations will "test the resilience of all asset classes," which may lead to a new appetite for safe-haven assets.

Growing trade tensions and renewed uncertainty in global markets are leading investors to seek alternative assets, including Bitcoin and tokenized real-world assets (RWAs), amid rising concerns about the long-term stability of the financial system.

Tensions in global trade continue to weigh on investor sentiment, despite U.S. President Donald Trump announcing on April 9 a 90-day pause on reciprocal tariff increases, reverting tariffs to the 10% baseline for most countries.

At the same time, Trump raised his tariffs on Chinese products from 104% to 125%, according to the Financial Times on April 9.

“President Trump's tariff escalation marks a significant turning point for global markets,” a move that signals “more than just a trade dispute,” said Teddy Pornprinya, co-founder of Plume — a first-layer blockchain focused on tokenized real-world assets. He added:

“This exposes deeper fractures in the global monetary system.”

With the United States and China facing what he described as unsustainable debt levels, Pornprinya warned of an increasing reliance on inflationary tools, including the possible devaluation of the Chinese yuan.

“These dynamics will test the resilience of all asset classes” and drive greater adoption of tokenized credit and private yield products that “are not exposed to sovereign devaluation games,” he stated.

Fear related to tariffs has caused the trading volume of tokenized gold to skyrocket to the highest level in two years this week, surpassing $1 billion for the first time since the U.S. banking crisis in 2023, Cointelegraph reported on April 10.