Tariffs Vs. Bitcoin: How Crypto is Reacting to Trump’s Trade War Economy
The post Tariffs Vs. Bitcoin: How Crypto is Reacting to Trump’s Trade War Economy appeared on BitcoinEthereumNews.com.
Trump’s tariff reversals continue to create upheaval across financial markets, and there are no signs of stopping. Many are weary of the predicted slowdown in economic activity throughout the third quarter of 2025. Unlike traditional markets, crypto has shown a different trajectory. Specifically, Bitcoin has decoupled from news regarding tariffs. According to Kronos Research’s CEO, cryptocurrency is expected to contribute to easing trade uncertainty for individuals and businesses alike. Tariff Twists and Turns President Trump’s trade policy in 2025 has been characterized by a recurring pattern of tariff threats decorated with reversals and extensions. On Monday, President Trump announced reciprocal tariffs targeting 14 countries, with rates between 25% and 40%. He also extended a pause on broader tariffs until August. Further negotiations are expected, with a mid-July deadline for potential trade deals. “Global trade talks feel fragmented, with the US demanding more while constantly shifting its stance,” Huang told BeInCrypto. In some cases, President Trump’s pushback proved effective. Last week, Canada immediately rescinded its Digital Services Tax (DST)—a 3% levy on digital revenues generated within its borders—the day after the United States abruptly suspended all trade negotiations with the country. This move was met positively by traditional financial markets, with the Dow Jones Industrial Average and Nasdaq Composite seeing gains and the S&P 500 reaching a new record high. The Canadian Dollar also remained relatively steady against the US Dollar. While some see these latest announcements as leverage in ongoing negotiations rather than a direct escalation, significant volatility persists. Much of it has created immense uncertainty for businesses globally. The Escalating Costs on Consumers and Businesses Among several aspects of Trump’s trade policy, the lingering 10% minimum tariff rate on most US imports directly relates to higher consumer costs and reduced business profits. This levy, three to four times higher…
Filed under: News - @ July 11, 2025 11:27 pm