#OneBigBeautifulBill
Markets are anxious as the critical July 9 deadline looms, and the government is threatening a 50% tariff. If he were to ever be re-elected, former U.S. President Donald Trump has warned that he may slap import duties of up to 50% on goods from certain countries, a move that has the potential to alter the course of international commerce. The notification is issued only days before the deadline of July 9, when President Biden's administration must make a decision about maintaining the Trump-era tariffs on Chinese products. Trump's aggressive strategy involves a 10% uniform baseline tariff on all items from other nations, as well as a planned 60%–70% blanket tariff on imports from China. What is our objective? To punish countries Trump believes are "cheating" on trade, lessen reliance on foreign suppliers, and strengthen domestic production. Why It Counts: These extreme tariff policies may have wide-ranging repercussions:
A 50% tariff on Chinese imports may prompt retaliation, reigniting a trade conflict between the United States and China. The Pressure of Inflation: The Federal Reserve's inflation management may become even more difficult if import prices rise, which might cause consumer prices to rise.
Volatility: As investors consider policy uncertainty and the potential for an economic slowdown, there may be greater volatility in equities and commodities. The judgement made on July 9 is crucial. The political pressure from both parties, particularly in an election year, may affect the result even if Biden has adopted a more moderate stance on trade.
The effects are anticipated by investors, producers, and heads of state from around the world. We may be entering a period of increased protectionism and economic nationalism if Trump's rhetoric has an impact on real politics. This uncertainty could favor decentralized assets like gold and Bitcoin, which frequently serve as a hedge against macroeconomic instability and fiat currency pressure, for the cryptocurrency community.