#TrumpTariffs

Trump’s Tariffs Are Back – What Could It Mean for Crypto and Global Markets?

Former President Donald Trump has signaled a return to aggressive tariff policies if re-elected in 2024, proposing new tariffs on Chinese goods and potentially even a universal baseline tariff on all imports. Markets are reacting but what does this mean for crypto?

1. Rising Tensions, Economic Uncertainty:

Tariffs historically raise costs for importers, spark trade wars, and disrupt global supply chains. This can lead to inflation a key concern for traditional investors. As uncertainty rises, some turn to alternative assets like gold or crypto.

2. Bitcoin as a Hedge?

In past periods of geopolitical tension or inflationary fear, Bitcoin and other decentralized assets have seen inflows. If tariffs drive inflation or weaken the USD, BTC could once again be positioned as a “Digital Gold.”

3. Dollar Strength vs De-dollarization:

Tariffs may strengthen the dollar short-term (via repatriation and reduced imports), but long-term trade realignments could accelerate de-dollarization trends. If major economies pivot away from the USD, stablecoins and crypto payment rails may gain global traction.

4. China and Crypto Mining:

Any new wave of tariffs targeting China could reignite U.S. China tensions. While China's mining dominance has waned, geopolitical pressure may influence mining equipment supply chains and global hashrate distribution.