#TrumpTariffs

Trump's Tariffs and How They Affect Cryptocurrency

President Donald Trump’s trade policies, especially new tariffs, are shaking up global markets — and the crypto world is feeling it too. Here’s a simple breakdown:

1. What’s Happening Now

New Tariffs:

A 50% tariff on goods from the European Union and 25% extra taxes on products like iPhones (announced in May 2025).

Older tariffs included 20–25% on items from China, Canada, Mexico, and metals like steel.

Crypto’s Reaction:

Bitcoin dropped 5.4% to around $82,000 right after the news.

Other cryptos like Ethereum and Solana also fell.

Over $500 million in crypto investments were wiped out in just 24 hours due to panic selling.

Crypto-related stocks like Coinbase dropped by 6–9% after hours.

2. What Could Happen Next

Trump’s plan is to change how global trade works:

Focus on U.S. Industry: Targeting countries that sell more to the U.S. than they buy, like China and Germany.

“Liberation Day” Tariffs: New tariffs on 15 countries, rolled out slowly to avoid a big shock.

New Global Alliances: Trump wants to build a team of tech and crypto leaders to challenge China’s influence.

3. What This Means for Crypto

In the Short Term:

High Volatility: $BTC Bitcoin’s price went from $111K to $108K in just days — similar to tech stocks.

Risk of Big Losses: Large Bitcoin trades are being liquidated, showing market stress.

Possible Recession: If the economy slows down, people may sell crypto to cover daily needs.

In the Long Term:

Weaker Dollar: Tariffs could reduce trust in the U.S. dollar, making $BTC Bitcoin more attractive as a global asset.

Bigger Investors Coming In: Some analysts think $BTC Bitcoin could hit $150K+ as more institutions buy in.

Better Tech Use: Blockchains could help avoid trade barriers, making crypto more useful in global business.#