#TrumpTariffs Based on the latest developments, President Trump's new tariffs (25–40%) targeting 14 countries—including key allies like Japan and South Korea—are likely to amplify global volatility rather than sustainably boost markets, with significant spillover effects on crypto and risk assets.

U.S. stocks dipped sharply post-announcement, though broader indices rallied 11% since April as investors initially priced in "benign" outcomes. Auto stocks fell 4–7% due to Asian manufacturing exposure. The dollar index dropped 6.6% (worst H1 since 1973), reflecting eroded trade confidence, while Treasury yields may rise if tariffs fuel inflation, delaying Fed cuts.

Bitcoin trades in tandem with tech stocks, down 6% YTD on trade fears. Tariff-induced inflation could boost gold (+26% in 2025), but crypto hasn’t mirrored this safe-haven demand. Broader risk assets face stagflation risks, with tariffs potentially reducing global GDP by 1% while raising prices.

Retaliation risks (especially from larger economies), legal uncertainty over IEEPA-based tariffs, and supply chain shocks for critical imports like semiconductors amplify volatility threats. While markets show resilience, sustained tariffs could weaken earnings and push investors toward gold or non-USD assets. Crypto remains tied to equities, lacking independent safe-haven momentum.