#TrumpTariffs

After making a call with the president of the European Commission, Ursula von der Leyen, president Trump announced on his Truth Social in 25th May that he agreed to extend the deadline to July 9th .

The EU has reaffirmed its commitment to a fair deal and is ready to move swiftly, but stated they need until July 9 to agree to a "good deal". While some tariffs were paused, a 25% levy on EU steel and aluminum remains in place.

Trump's administration has imposed a "reciprocal" 10% baseline tariff on imports from nearly all US trading partners, with higher rates for some countries like China.

* Analysts suggest that these tariffs have "roiled global markets, wiping out trillions in value, and leaving many businesses stumped on how to plan for the future amid the never-ending uncertainty."

* The tariffs are projected to significantly increase federal tax revenues and reduce market income for US households.

* There have been instances of "well-timed trades" by US officials before tariff announcements, raising ethical concerns.

Mixed Impact on Cryptocurrency Market

* When Trump announces or implements new tariffs, it creates uncertainty in global financial markets. This often leads to a "risk-off" environment where investors become more cautious and tend to sell off riskier assets, including cryptocurrencies like Bitcoin, Ethereum, and others.

* For example, past announcements of tariffs on EU imports or Chinese goods have led to immediate price drops in Bitcoin and other major cryptos, along with declines in related crypto stocks.

* The S&P 500 and other traditional markets often see volatility as well, and in high-stress situations, crypto can show a correlation with these markets, moving in tandem.

* Some argue that if tariffs lead to erode trust in traditional financial systems, investors might turn to decentralized alternatives as a hedge against inflation or currency devaluation. But Bitcoin's high volatility makes many investors cautious about its reliability as a safe haven compared to traditional assets like gold.