In recent weeks, President Donald Trump's administration has reignited the trade war with China by imposing import tariffs of up to 145% on many items from the world's second-largest economy. In response, China has also launched strong retaliatory measures, causing global supply chains to continue to be disrupted and the cost of goods to soar.

As a result, the global economy is facing a clear risk of recession: the IMF has lowered its global growth forecast to 2.8%, while analysts warn that U.S. GDP could drop by 6% if the tariff war drags on. Inflation is rising, consumer spending is weakening, and the risk of shortages of goods is threatening to return as it did during the pandemic.

Not outside this vortex, the cryptocurrency market has witnessed a strong sell-off right after Trump announced the new tax policy. Ethereum (ETH) dropped more than 20% in a few days, triggering a wave of liquidations worth over $2.2 billion across the market. Despite a slight recovery signal when Trump indicated he would 'pause' some tariffs, investor sentiment remains skeptical and cautious.

Trump's continued use of tariffs as a bargaining tool is not only destabilizing traditional markets but also putting risk assets like crypto in a difficult position. Ethereum – one of the largest blockchains in the world – is facing dual pressures: from the macroeconomic environment to declining investment flows.

Summary: Trump's trade policy is creating a 'seismic shock' for both traditional finance and the digital asset space. If the war continues.