This old man Trump doesn't play by the rules.
Just one day after the imposition of reciprocal tariffs on the whole world, a 90-day suspension was announced.
The market viewed this as a major easing signal, the Nasdaq and S&P rebounded strongly, and the crypto market also began to soar!
It has to be said that cryptocurrencies are now considered US dollar assets, and US policies can almost completely influence the rise and fall of the market.
What’s even more outrageous is that four hours before Trump announced the suspension of tariffs, he publicly called on everyone to buy at the bottom!
Trump has single-handedly turned the U.S. stock market into something like cryptocurrency, where the rise and fall of prices can be controlled by simply shouting orders.
China, which just announced yesterday that it would impose an 84% retaliatory tariff on the United States, has increased its tax rate to 125%!
This time Trump is completely done with pretending and is revealing his cards!
The so-called tariff trade war is purely for China. Other countries are just pretending. It is only targeting China!
And the friends who had originally agreed to work together to counter the United States have all given in.
Although the European Union also announced yesterday that it had voted to impose a 25% retaliatory tariff on US products, it only involved goods worth US$23.2 billion, accounting for 6% of US exports to the EU.
The EU also made it clear that this retaliation against the 25% tariff on EU steel and aluminum exports is not aimed at the global reciprocal tariffs in April.
The current situation may have three impacts on the future trend of the encryption industry:
First, although the reciprocal tariffs have been suspended, the United States still imposes a 10% basic tariff on the world, and the 125% tariff imposed on China will also seriously affect prices in the United States.
The Fed will not cut interest rates as long as inflation remains high, and believes that tariffs will be one of the reasons for rising inflation. Unless the labor market deteriorates or economic activity weakens (recession expectations), the Fed has no intention of cutting interest rates.
In simple terms, don't count on the Federal Reserve to cut interest rates in the short term.
The second point is that the spring of crypto payments may be coming!
A hundred years ago, the United States implemented Prohibition, which was much more severe than raising tariffs today!
However, Prohibition not only failed to effectively reduce alcohol consumption, but instead became the most violent commodity for gangs, and ultimately promoted the professionalization and organization of American gangs.
Now that tariffs affect a wider range of goods, if a large number of goods are smuggled into the US market by gangs, how will they pay for the settlement?
That has to be paid in cryptocurrency!
As for the third point, if the tariff trade war against China becomes a protracted war, the RMB exchange rate will definitely be affected, which may in turn affect RMB assets.
