Former President Donald $TRUMP has announced plans to impose new tariffs on countries taxing U.S. exports, aiming to protect American industry and bring jobs back home. At the same time, he claims Congress is close to passing the biggest tax cut bill in U.S. history, calling it a “rocket” for the economy.
Tariffs: Shield or Spark?
The tariff plan targets nations that tax U.S. goods, a move Trump says will level the playing field. But critics warn it could trigger retaliatory measures and revive trade tensions with major economies like China and the EU. Global supply chains may again face pressure, raising the risk of market volatility.
Tax Cuts: Fuel for Growth or Fire for Inflation?
The proposed tax cuts could boost consumer spending and business investment, but with inflation still lingering, economists caution that they might overheat the economy, leading to more interest rate hikes and financial instability.
Crypto and Markets: Hedge or Hazard?
Uncertainty around trade and inflation often pushes investors toward risk assets like Bitcoin ($BTC ). If traditional markets react negatively to trade disruption, crypto could see increased demand as a hedge against economic turmoil. Still, a strong dollar and tight regulations may temper crypto's gains.
Trump’s economic playbook—tariffs and tax cuts—could spark short-term growth, but it carries significant global risks. The coming months will reveal whether these policies drive markets higher or lead to renewed volatility.
