Trump's Tariff Club Strikes Globally, Is the Crypto World About to Change?
Dear friends, Trump's tariff policy has officially taken effect, and this move will have a significant impact on the crypto space!
From the data, under the new tariff system, the average tariff rate in the United States has soared to 15.2%, the highest since World War II. Although the EU, Japan, and others have received 'preferential rates', Switzerland's 39% and India's future 50% tariffs, along with ongoing negotiations for increased tariffs on Mexico, Canada, and China, as well as plans to impose new tariffs on industries such as pharmaceuticals and semiconductors, are concerning.
As tariffs rise, global economic fluctuations intensify. Wall Street institutions are sounding the alarm, with Morgan Stanley and others warning that the S&P 500 may pull back. Currently, U.S. inflation is on the rise, while employment and consumption are slowing, leading to greater economic uncertainty.
In this context, the demand for safe-haven assets will increase. Cryptocurrency, as 'digital gold', has always been one of the choices for capital seeking refuge. If traditional financial markets become unstable due to tariff policies, funds may flow into the crypto space, driving up cryptocurrency prices.
Moreover, the legality of Trump’s tariff policy is also facing court challenges, and there is uncertainty regarding future policy directions. The market's concerns over this uncertainty may lead more people to turn to cryptocurrencies as a decentralized asset, seeking more stable investment targets.
However, we must also be wary of the escalating global trade frictions triggered by tariff policies, which could lead to economic recession, subsequently affecting the overall sentiment in the cryptocurrency market.
Therefore, the upcoming trends in the crypto space are worth close attention. Let’s see what kind of impact this 'black swan' of tariffs will bring!