Every time Trump mentions tariffs, crypto prices drop — as if America's most important import is Ethereum 😅
But let’s explain simply: tariffs = taxes on imports. This means if you import a product for $100, with a 10% tariff, you pay $100 to the seller + $10 to the government.
The result? Prices go up, consumers spend less, the economy slows down, and investors flee from risky assets like crypto and move to gold.
So why do they impose tariffs? To encourage local manufacturing. There are no tariffs on imports if there are no imports at all! But self-reliance takes time, effort, and resources.
In summary: tariffs = market confusion and make it unstable
#Crypto