#TrumpTariffs
Global markets are reeling after President Trump's announcement of new tariffs on imports from several countries, including Japan, South Korea, and Malaysia. Here's what you need to know ¹ ²:
- *Tariff Details*: The US has imposed 25% tariffs on Japan and South Korea, effective August 1, in a bid to correct trade imbalances. Other countries facing tariffs include ²:
- *Laos and Myanmar*: 40% tariffs on targeted imports
- *Malaysia*: 25% tariffs
- *Tunisia and Kazakhstan*: 25% tariffs
- *India and EU*: Potential tariffs if trade deals aren't finalized
- *Market Reaction*: The announcement sent shockwaves through global markets, with:
- *US Stocks*: Falling ~0.9%
- *Oil Prices and Bond Yields*: Spiking
- *Bitcoin*: Dropping to around $107,970, a decrease of $860
- *VIX*: Jumping 9%, indicating increased volatility
- *What It Means for Crypto Traders*: Historically, tariffs lead to traditional market panic, driving smart money towards neutral, borderless assets like Bitcoin. Key takeaways include ¹ ³:
- *Capital Protection*: Prioritizing capital protection over chasing pumps
- *Risk Management*: Being cautious of risk-on/off rotations and potential liquidations
- *Bitcoin's Role*: Sometimes acting like "digital gold" during macroeconomic stress
- *Lessons from Past Tariff Cycles*: ³
- *2018 China Tariffs*: Bitcoin dropped 8% initially, then rebounded
- *2020-2021*: Stimulus and tariffs drove a Bitcoin bull run
- *2025*: Post-halving strength and ETF flows could lead to unexpected crypto market movements