#TrumpTariffs

President Trump’s plan to impose tariffs of up to 55% on imports from countries that tax U.S. exports has added fresh pressure to global markets. In April, UK exports to the U.S. fell by £2 billion, contributing to a 0.3% contraction in GDP. At the same time, the U.S. dollar slipped to a three-year low, and jobless claims rose to a 21-month high — early indicators of growing economic stress.

In a new round of talks held in London, U.S. and Chinese negotiators reached a limited agreement. The deal includes reduced restrictions on Chinese exports of rare earth minerals and magnets, while locking in U.S. tariffs at 55% and Chinese tariffs at 10%. Though the framework is reportedly “done,” final signoff from Presidents Trump and Xi is still pending. Notably, the agreement remains light on specifics.

Markets reacted cautiously. U.S. equity futures declined over 1%, and crypto markets followed the risk-off mood. Bitcoin briefly dipped below $110,000 and is currently trading around $107,500 — down about 2.5%. Ethereum also slipped roughly 1% before stabilizing. While crypto often serves as a hedge in periods of monetary easing, its immediate response to trade uncertainty typically aligns with broader risk sentiment.

If tariffs continue to escalate, global economic growth could slow further, potentially prompting central banks to introduce new rounds of stimulus. In that environment, crypto and other high-beta assets may rebound — but volatility is likely to remain elevated as markets digest the implications of a more fractured global trade landscape.