Trump's tariffs, implemented as part of his aggressive trade policy, are generating economic uncertainty that impacts Ethereum (ETH). In the short term, tariffs such as the 50% increase on steel and aluminum or the 10% baseline on all imports have led to risk aversion, causing significant drops in the price of ETH, with reported declines of up to 28% in recent days following tariff announcements. This is because investors tend to move away from volatile assets like cryptocurrencies amid fears of inflation and lower global liquidity. 💰
In the long term, the effect is mixed. Some analysts suggest that a weakness of the dollar, potentially induced by these tariffs, could strengthen the appeal of Ethereum as an alternative asset, especially if inflation persists and interest rates adjust. However, disruption in supply chains, such as the increase in mining equipment costs, could reduce activity on the Ethereum network, affecting its security and value. Volatility will depend on how trade negotiations evolve and the responses from other countries, such as China's retaliatory measures, which keeps the outlook unpredictable. 👽💻