#TrumpTariffs Trump Tariffs
#TrumpTariffs $BTC $ETH $XRP
Overview of the decision
On April 11, 2025, U.S. President Donald Trump issued an executive order imposing new tariffs ranging from 10% to 41% on imports from 69 trading partners, including Canada, Brazil, India, Taiwan, and Switzerland. This decision aims to protect American industries and reduce the trade deficit but exacerbates tensions with major countries and disrupts global supply chains.
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Targeted sectors and sizes
- Steel and aluminum: Increases of up to 25% on certain imports
- Cars and spare parts: Additional fees of 10–35%
- Oil and gas: 10% on Canadian crude and other manufactured materials
- Electronic goods and heavy machinery: 15–41% depending on origin and type of goods
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International reactions
- Canada: Responded by imposing retaliatory tariffs of 25% on U.S. imports worth $107 billion.
- Europe and Japan: Threatened to increase customs scrutiny and impose retaliatory tariffs on key products.
- China: Despite being absent from the list of 69, the decline in trade with its partners in Asia poses a threat to economic recovery.
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Effects of tariffs on the traditional economy
- Consumer price inflation; rising costs of fuel and manufactured goods and their direct impact on household purchasing power.
- Supply chain disruptions; decline in production volume in the automotive and heavy machinery sectors and disruption of assembly lines.
- Pressure on profits of American companies and trading partners, reflecting on stock markets and futures contracts.
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Impact of tariffs on the cryptocurrency market
- As inflation rises and capital constraints tighten, many turned to Bitcoin and Ether as safe havens to protect the real value of their assets.
- Rising mining costs and importing equipment due to tariffs on machinery; this has increased the energy costs required for operation and reduced profit margins; a direct impact on the liquidity of cryptocurrency markets.
- Increased price volatility: Spot trading volume decreased while futures and margin trading increased in search of quick compensation for losses.
- Growth of decentralized finance (DeFi) platforms and users' shift to using decentralized protocols to circumvent banking restrictions and difficulties with cross-border transfers.
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Future forecasts
1. Continued inflationary pressures and high interest rates in traditional markets will drive more investors toward digital assets.
2. Possibility of new stimulus packages in the United States that will increase purchasing power and temporarily rebalance the markets.
3. Anticipate any additional trade reactions from affected countries, which may include expanding tariffs or trade swaps with potential government digital currencies..$BTC
