#TrumpTariffs

🚨Trump's Tariffs: Implications for Global Trade and the Crypto Market**

On June 4, 2025, President Donald Trump implemented a significant shift in U.S. trade policy by doubling tariffs on imported steel and aluminum from 25% to 50%. This move, justified under Section 232 of the Trade Expansion Act of 1962, aims to protect national security and bolster domestic industries.

🌐Global Economic Impact

The Organization for Economic Cooperation and Development (OECD) has downgraded its global economic growth forecast, citing the negative impact of these tariffs. Global GDP growth is now expected to decline from 3.3% in 2024 to 2.9% in 2025 and 2026. In the U.S., GDP growth is projected to slow to 1.6% in 2025, down from 2.8% in 2024. The OECD warns that higher tariffs may lead to increased consumer prices and decreased investment due to policy uncertainty.

💵Trade Relations and Retaliation

President Trump has set a deadline for countries to submit their best trade offers to avoid the implementation of "massive reciprocal tariffs" slated to begin on July 8. The U.S. has already increased tariffs on steel and aluminum imports to 50%, with exemptions for the UK under a recent trade deal. Preliminary trade agreements have been reached with China and the UK, though both await formal ratification.

🔸Legal Challenges❗

The tariffs have faced legal scrutiny. In the case of V.O.S. Selections, Inc. v. United States, a three-judge panel ruled that the president does not have the authority to use the International Emergency Economic Powers Act (IEEPA) to set tariffs in this manner. The administration has appealed this ruling, and the Federal Circuit Appeals Court has temporarily stayed the lower court's decision.

🔸Implications for the Crypto Market

The increased tariffs and resulting economic uncertainty have potential implications for the cryptocurrency market.