#TrumpTariffs Trump is trying to come up with ideas every now and then that make us feel like he is achieving a historical accomplishment. Now he has decided again to impose increased tariffs on countries that tax American exports. This means entering a new trade war as if we don't have enough tension in the global economy.
At the same time, he says Congress will approve the largest tax cut bill in American history, describing it as a "rocket" that will explode economic growth. On paper, these tax cuts look good; they will increase corporate profits and give the market a short-term boost, but the problem is that when you combine them with protectionist policies and tariffs, you create a terrifying uncertainty among international investors.
So we might see rises in the American stock market in the short term due to industrial optimism, but in the medium and long term, the trade war will create headaches in supply chains and increase production costs, which will in turn drive up inflation rates.
Regarding cryptocurrencies, any state of concern or economic chaos makes people flee to Bitcoin and others as a hedge against inflation and loss of confidence in traditional monetary policies, but at the same time, if the market collapses, liquidity will decrease and there will be a decline even in crypto.
What Trump is doing is not a growth rocket; it's a rocket that could explode the global economy. Stay aware of the risks and prepare your plans for all scenarios.
