The post Binance Research Highlights Crypto Market Response to Tariff Escalation appeared on BitcoinEthereumNews.com.

Others ​In early 2025, the United States initiated a significant shift in global trade dynamics by imposing sweeping tariffs on imports from numerous countries. This move, aimed at restoring trade fairness and U.S. sovereignty, has led to a resurgence of protectionist policies reminiscent of the 1930s. The implications of these tariffs have been profound, not only on traditional financial markets but also on the cryptocurrency sector.​ The New Era of Protectionism Upon returning to office in January 2025, President Donald Trump announced a 10% blanket tariff on all imports to the United States, effective April 5. This baseline duty was supplemented with higher, targeted tariffs against specific trading partners:​ 125% on China​ 20% on the European Union​ 24% on Japan 46% on Vietnam​ Canada and Mexico had already been subjected to 20% duties earlier in the year. These measures elevated the average U.S. import tax to approximately 18.8%, a stark increase from the 2.5% average in 2024. In retaliation, affected countries implemented their own tariffs on U.S. goods, escalating global trade tensions. ​ Treasury Market Flashes Warning Signs Investors are now closely watching the U.S. bond market, where a steep dislocation in the yield curve is raising red flags. On April 9, the spread between 10-year and 2-year Treasury yields—and between 30-year and 2-year bonds—widened to levels last seen in 2022, signaling deep market unease. Just a day earlier, the Treasury’s $58 billion 3-year note auction saw weak demand. However, strong interest at the $39 billion 10-year bond auction on April 9 offered some relief. The market is now bracing for the $22 billion 30-year auction, with macro uncertainty still looming. Impact on the Cryptocurrency Market The cryptocurrency market has experienced significant volatility in response to these trade policies. Following the tariff announcements, the total crypto market capitalization declined by…

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Filed under: News - @ April 10, 2025 9:25 am