Tariffs

📅 On June 26, 2025, President Trump announced a trade framework with China — tentatively signed, but still awaiting final clearance by both him and President Jinping.
📌 Deal Highlights:
💰 55% U.S. tariffs on Chinese imports
🔁 China’s tariffs on U.S. goods fixed at 10%
🧲 Rare earths & magnets supplied up front by China
🎓 Educational exchange continues: Chinese students retained in U.S. universities
🕊️ Built upon the May “Geneva truce”, which paused steep tariffs (145% U.S., 125% China)

🧩 What’s Included (per NYT’s “What’s In and Not In”):
🇺🇸 China to buy extra U.S. goods & services, especially agricultural products like soybeans — although terms lack detailed enforcement clauses
📜 Commitment to stronger IP protection and forced tech transfer curbs, though no binding enforcement mechanisms are outlined
🚫 No mention of Chinese state subsidies for its industries or limits on state-owned enterprises — a big omission
🧾 What’s Missing?
🧨 No rigorous monitoring/enforcement plan defined — unclear how disputes will be handled
🔁 Commercial subsidies and State Owned Enterprise (SOE) support remain unaddressed, pushing major issues into future phases

⚠️ Risks & Uncertainties:
📜 Final form still sketchy— no signatures, enforcement, or punishments outlined
⚓ Economists caution that markets may still reel from partial/full implementation depending on follow-through
🌍 Port disruptions remain from prior tariff cycles

₿📈 Crypto Market Reaction & Volatility:
📉 Short-term dips in BTC and altcoins often occur as risk aversion eases and capital shifts to equities
💵 A softer dollar post-announcement supports crypto rallies — markets treat dollar weakness as crypto-friendly
🔄 Bitcoin surged to ~$105k after May truce, but pulled back — a classic “buy-the-rumor, sell-the-news” scenario
📊 Ongoing volatility expected — Binance analysis shows crypto reacts sharply to tariff headlines
🛡️ Longer-term potential: if the deal holds, trade stability may bring institutional crypto inflows and support Trump’s 2025 crypto-friendly initiatives (e.g., Strategic Bitcoin Reserve)

📝 Quick Fire Summary
🔒 In ✅: Tariff framework, rare earths, IP protections, U.S. purchases
❌ Out: Enforcement mechanisms, subsidy reform, SOE limits
📉 Crypto outlook: Expect volatility — initial dips followed by potential bounce if trade optimism holds
#Tariffs $BTC

🔹 The U.S. Treasury extends accounting maneuvers to avoid default

🔹 Court rulings on Trump-era tariffs could accelerate the debt crisis

🔹 Washington signals possible end to the 'revenge tax' amid global tax talks

The U.S. Treasury Department announced it will continue using emergency accounting measures to avoid breaching the debt ceiling, extending them through July 24, 2025. This gives lawmakers more time to reach a solution and avoid a potential national default.
Treasury Secretary Scott Bessent urged Congress to act without delay, warning that pending court rulings on Trump-era tariffs could push the U.S. closer to a financial breaking point, known as “X-date”—the moment when the government can no longer meet its financial obligations.

Emergency Measures Buy Time but Not a Solution
The Treasury confirmed that it is extending the period during which it can use “extraordinary accounting measures”—temporary tactics like suspending investments in federal programs or reallocating funds across government accounts—to stay under the statutory debt limit.
Bessent sent a formal letter to House Speaker Mike Johnson and other key congressional leaders, calling on them to act before the upcoming August recess. While these temporary steps help avoid an immediate crisis, Bessent emphasized they do not fix the root problem: the need to raise or suspend the debt ceiling.
Failing to act, he warned, could damage investor confidence and hurt the U.S. credit rating, with serious repercussions not only for the national economy but for global markets as well.

GOP Divisions Delay Action as Debt Threat Looms
Pressure is mounting on Republican lawmakers, who have so far failed to finalize a major tax and spending package due to internal disagreements over funding priorities.
If they don’t reach a deal soon, the Treasury could run out of options to keep paying bills without breaching the debt ceiling. The longer Congress delays, the higher the risk of market volatility, investor panic, and public distrust.

Court Rulings on Tariffs Could Shake Government Revenues
Adding to the uncertainty are ongoing legal challenges to Trump-era tariffs. These tariffs have generated $23 billion in revenue, which has helped bolster the Treasury’s cash reserves during this debt-restricted period.
However, a recent ruling from the U.S. Court of International Trade declared that some of these tariffs exceed presidential authority and lack a legal basis. If the Treasury is forced to stop collecting or even refund certain tariffs, the government could lose a key revenue stream at a critical time.
Such a development could move the X-date up by weeks, giving Congress significantly less time to act than current projections suggest.

Treasury Suggests End to 'Revenge Tax' Amid OECD Tax Progress
In a separate development, the Treasury is signaling that it may soon eliminate the controversial "revenge tax", as OECD-led global tax talks show real progress. Deputy Treasury Secretary Michael Faulkender stated that an international agreement may render the U.S. Section 899 provision—aimed at countries with digital service taxes—unnecessary.
Section 899, introduced under the Trump administration, is widely seen as a retaliatory measure. It would impose tax penalties on investors and firms in countries that the U.S. believes are discriminating against American tech giants like Google, Apple, and Amazon with digital taxes.
Countries such as France, Canada, and the United Kingdom have enacted such digital taxes. If a global agreement is reached, the U.S. may drop these retaliatory threats, potentially easing transatlantic tensions.

🔻 Summary
The U.S. Treasury is buying time—but market patience is limited. By extending emergency measures, it gives Congress breathing room, but pressure is mounting fast. If courts, tariffs, or political inaction converge, the U.S. could face a default crisis within weeks. Decisions made in the coming days could prove critical.

#USPolitics , #TRUMP , #Tariffs , #TradeWars , #tax

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Foreign direct investment (FDI) in the United States dropped significantly in the first quarter of 2025. According to fresh data from the U.S. Department of Commerce, inflows amounted to just $52.8 billion, down from $79.9 billion in the final quarter of 2024.
🔹 This sharp decline in capital inflows coincides with growing uncertainty around President Donald Trump's tariff policies. As businesses reconsider their strategies in response to changing import rules, many are holding off on major investments until clearer guidelines are established.

Temporary Slowdown or Alarming Trend?
Despite the worrying numbers, analysts caution that this slowdown might be temporary. Several major foreign firms are launching new manufacturing projects across the U.S., which could soon turn the tide. One notable example is Japan’s Nippon Steel, which plans to acquire US Steel in a $15 billion deal — a move expected to lift investment figures in upcoming quarters.
The decline in FDI also coincided with a record current account deficit, which reached $450.2 billion in Q1 2025. Companies rushed to import goods in advance of Trump’s proposed tariffs, putting further pressure on the trade balance.

Tariffs Undermine Dollar and Inflate Deficit
In addition to weakened FDI, America’s external trade faces serious strain. Imports surged to an all-time high of $1 trillion, driven by non-monetary gold and pharmaceutical goods. In contrast, service imports dipped slightly due to lower payments for intellectual property licenses.
Economists warn that the combination of a ballooning current account deficit and federal budget shortfalls could undermine the long-term confidence in the U.S. dollar as a safe haven.

Trump: Tariffs Bring Jobs Back to America
President Trump views the situation differently. He argues that aggressive tariffs are motivating companies to bring manufacturing back to U.S. soil, aligning with his “America First” policy to boost domestic industry.
However, economists like Paul Ashworth from Capital Economics remain cautious. While he acknowledges that uncertainty may have affected some investment decisions, he believes the Q1 drop in FDI could be attributed to one-off deals or isolated business transactions, rather than a broader systemic problem.

Still, Ashworth warned: “Prolonged uncertainty over tariffs may cause firms to delay investment even further, potentially weighing on future economic growth.”

#US , #economy , #TRUMP , #Tariffs , #worldnews

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

U.S. President #DonaldTrump is heading into two critical weeks. By July 4, he has pledged to pass a sweeping tax and budget reform, while the temporary tariff pause imposed in spring expires on July 9. He’s personally making all decisions — from new tariffs to Iran negotiations.
🤔 What’s happening:
⚫ The tax reform includes extended lower rates, business incentives, and Medicaid cuts
⚫ New #Tariffs could reach up to 10% for all countries, plus targeted duties on steel and aluminum
⚫ The global economy is at risk of recession — a “double hit” from tariffs and Iran tensions
⚫ Businesses are holding back — delaying investments and cutting spending
💭 Expert opinions:
“This is the political cost of excessive presidential power — all responsibility falls on him,” — Julian Zelizer, Princeton
“Companies can’t plan — uncertainty is paralyzing,” — Rita McGrath, Columbia Business School
“Recession is becoming more likely,” — Stephen Roach, former chief economist at Morgan Stanley
#BinanceAlphaAlert @WISE PUMPS

The United States is facing a serious fiscal challenge: in May 2025, the federal deficit soared to $316 billion, making it the third-largest monthly shortfall in U.S. history. Although April saw a brief surplus due to tax inflows, May's spending once again tipped the scales, placing renewed pressure on public finances.

💸 Annual Deficit Already Surpasses $1.36 Trillion
For the first eight months of the 2025 fiscal year, the cumulative deficit has reached $1.36 trillion, up 14% year-over-year. The U.S. Treasury Department also reported that in May alone, the government paid $92 billion in interest – more than any category except Medicare and Social Security.
With the total U.S. debt now at $36.2 trillion, interest payments have already hit $776 billion this fiscal year and are on track to exceed $1.2 trillion by year-end.

📈 Tariff Revenue Helps – But Not Enough
While tax revenues rose by 15% in May, government spending increased even faster – up 2% month-over-month and 8% compared to last year. Tariffs gave a temporary boost: following President Donald Trump’s "Liberation Day" initiative in April, the government collected $23 billion from tariffs in May, up from just $6 billion a year earlier. For the year, tariffs have brought in $86 billion, a 59% increase.
Trump’s new trade policy has helped revenues, but not enough to offset soaring costs.

⚠️ Wall Street Raises the Alarm
Despite revenue growth, the fiscal outlook remains concerning. 10-year Treasury yields are hovering around 4.4%, roughly unchanged from last year but still painfully high for a government borrowing trillions.
Top Wall Street figures – Jamie Dimon (JPMorgan), Larry Fink (BlackRock), and Ray Dalio (Bridgewater) – have all voiced serious concerns about the growing debt burden. The U.S. deficit now accounts for over 6% of GDP, a level rarely seen outside of wartime or global crises.

#usa , #USPolitics , #FederalReserve , #TRUMP , #Tariffs

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A sharp increase in tariffs on small parcels from #china to the U.S. has caused a supply slump, impacting giants like Shein and Temu. In May, trade volume dropped to $1B — the lowest since early 2023.
🤔 What happened
⚫ As of May 2, the duty exemption for parcels under $800 (the “de minimis” rule) was removed
⚫ New #Tariffs reach up to 54% on clothing, household goods, and electronics
⚫ Shein and Temu raised prices and saw double-digit sales declines
⚫ Chinese sellers are now forced to use warehouse shipments — with costs reaching tens of thousands of yuan
📌 Why it matters
⚫ Hundreds of thousands of #Chinese sellers are losing their cheap gateway to the U.S. market
⚫ Competition is shrinking — consumers face higher prices
⚫ Small parcel volume to the U.S. dropped 40% year-over-year
⚫ Winners include markets like Malaysia, Belgium, and South Korea, where exports are rising
“This is a lose-lose — for both sellers and consumers,” says Wang Yuhao, founder of Shantivale.
#SaylorBTCPurchase @WISE PUMPS

Federal Reserve Chair Jerome Powell has not ruled out the possibility of interest rate cuts in 2025. Speaking before the House Financial Services Committee, he emphasized that any policy changes will depend on incoming economic data – particularly inflation and the effects of trade tariffs.

🏛 Fed Takes a Wait-and-See Approach
According to Powell, there is currently no plan for an immediate rate cut. Although the U.S. economy is navigating turbulent conditions, the central bank is choosing to wait for clearer signals. “We are well-positioned to wait and see how inflation evolves,” Powell stated, noting that June and July inflation data will be crucial.
Tariffs imposed in recent years could continue to affect consumer prices, which is why the Fed remains open to various scenarios. “The impact may be smaller than expected – but we need certainty,” he added.

📉 Inflation and Tariffs as Key Unknowns
Powell acknowledged that the full effects of previous tariff measures are not yet evident. The Fed needs more time to assess whether higher import duties are driving prices upward or if the market is adjusting to the changes. Only then can a decision on rates be made.

💵 Dollar’s Strength Remains Unshaken
Despite concerns about the economic effects of tariffs, Powell dismissed speculation about the U.S. dollar’s global status. “Talks about the dollar’s decline are exaggerated,” he said. He noted that recent volatility in U.S. Treasuries did not harm the dollar’s position as the world’s reserve currency.

🧮 Concerns Over U.S. Fiscal Trajectory
Powell also acknowledged that the country’s debt path is unsustainable. While avoiding direct commentary on fiscal or immigration policy, he stated that the current fiscal course “is not healthy in the long term.”

🔥 Schiff Warns of Economic Crisis Ahead
Economist Peter Schiff holds a starkly different view from Powell. He has long criticized the Fed’s monetary policy, arguing that inflation is not being driven by tariffs, but by the Fed’s own actions — particularly the prolonged period of ultra-low interest rates.
Schiff warns that the U.S. is headed for a combination of recession and high inflation — stagflation — and even suggests hyperinflation is possible. He fears global investors could begin to exit U.S. markets, further weakening the dollar. “All the inflationary chickens the Fed let loose over the last decade are coming home to roost,” Schiff remarked.

#JeromePowell , #Fed , #Tariffs , #Inflation , #GlobalMarkets

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Will Tariffs End the Golden Age of Bitcoin Mining in America?*
Bitcoin mining has experienced explosive growth in the United States over the past four years, transforming the country into the world’s largest producer of Bitcoin by hashrate. This surge was largely fueled by China’s 2021 crypto ban, which forced miners to relocate—with the U.S. emerging as the biggest winner.
However, the industry’s rapid expansion may soon face headwinds. Former President Donald Trump’s proposed tariffs on imported goods—including ASICs, the specialized machines used in Bitcoin mining—could increase costs for U.S. miners. While these tariffs (ranging from 10% to 50%) are unlikely to be catastrophic, they may slow down the pace of growth, according to industry experts.
But tariffs aren’t the only challenge. An even bigger factor could be the explosive demand for AI data centers, which are competing for the same key resources: power and infrastructure. As tech giants and startups alike race to build out AI capacity, electricity costs may rise, and access to favorable energy contracts could become more competitive—potentially squeezing Bitcoin miners out of the market.
So, will tariffs alone end Bitcoin mining’s golden age in America? Probably not. But between rising operational costs and the AI boom, the industry’s breakneck expansion may soon face a reality check.
#bitcoin
#CryptoMining
#Tariffs
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