#TrumpTariffs

Tariffs, Tax Cuts, and Global Volatility Risks

President Trump announced a grand plan: the largest tax cut in US history and additional tariffs on countries that impose taxes on US exports. On the surface, this policy appears pro-business—like a "rocket" for the domestic economy. Stock markets could soar, companies may enjoy greater profits, and domestic consumption might increase.

However, behind the short-term euphoria lies medium-term risks that cannot be ignored. Tariffs could provoke retaliation from other countries, triggering a trade war that disrupts global supply chains. Meanwhile, large fiscal stimulus in an already hot economy could drive inflation, forcing central banks to raise interest rates faster—which could potentially pressure risky assets like tech stocks and crypto.

For the crypto market, this situation creates a double-edged sword: on one hand, global uncertainty may drive demand for digital assets as a hedge. On the other hand, high interest rates and tightening liquidity could suppress prices and speculative interest.

In short, this policy could propel the market in the short term, but it also opens the door to deeper global volatility. Investors need to be cautious, as policy-driven growth could be fragile without systemic stability.