#TariffsPause Trump Tightens Taxes, Financial World Shaken: Ethereum and the Crypto Market Turmoil
In recent weeks, President Donald Trump's administration has restarted the trade war with China by imposing import tariffs of up to 145% on many items from the world's second-largest economy. In response, China has also launched strong retaliatory measures, causing global supply chains to continue to be disrupted and the cost of goods to soar.
As a result, the global economy is facing a clear risk of recession: the IMF has lowered its global growth forecast to 2.8%, while analysts warn that U.S. GDP could decline by 6% if the tariff war drags on. Inflation is rising, consumer spending is weakening, and shortages of goods are at risk of returning as during the pandemic.
Not outside this vortex, the cryptocurrency market has witnessed a massive sell-off right after Trump announced the new tax policy. Ethereum (ETH) dropped more than 20% in a few days, triggering a wave of liquidations exceeding $2.2 billion across the market. Although there are signs of a slight recovery as Trump signaled he would 'pause' some tariffs, investor sentiment remains skeptical and cautious.
Trump's continuation
