Perhaps everyone in the cryptocurrency circle does not have a deep understanding of the 34% tariff increase on top of the existing 20%, nor do they have a clear concept of the sudden increase in tariffs from commonly used transshipment trade countries.

To put it simply, I come from a manufacturing background and am still in operation. Our main export regions are primarily Europe and America. For the last month or two, I have been in discussions with major supermarkets and importers about this issue. The 20% tariff needs to be shared by both parties, with the best outcome being roughly 50/50. Most of the burden falls on domestic suppliers, who will bear over 60-70%. To put it more plainly, most manufacturing industries have a gross profit margin of about 15-20%. After deducting costs and expenses, the optimistic net profit is around 10%, while the less optimistic figure is 5-8%. If we then take on half of that 10%, we are already in a state of no profit or even loss. Now, suddenly, there is an additional 34%, which feels like the sky is falling.

I can't imagine the disaster this tax rate will bring to export companies, especially those reliant on exports to the U.S. Subsidies can't keep up, currency depreciation won't cover the losses, and retaliatory measures won't change the situation for these businesses. Furthermore, with transshipment trade blocked, we can’t export to the U.S. through intermediaries in Vietnam, Cambodia, and other regions. We might soon see a wave of layoffs and closures.

Everyone, don’t underestimate money; this vicious cycle of life will exceed your imagination. Keep your resources safe, and don’t flaunt your wealth when you're out. Stay low-key. I personally reserve my opinion on the extensive impact of this event on real life.

And don’t argue that shifting domestic demand and sales to other countries cannot solve the problem, because the American market is the largest in the world, even comparable to Europe.

Under a collapsed nest, how can there be intact eggs? Take care of yourself and leave a way out.